The Government, retail banks and the Reserve Bank announced a major financial support package for businesses and home owners affected by the economic impacts of COVID-19.
This scheme is specifically for small-medium sized businesses to protect jobs and support the economy during this challenging time. The Crown, in partnership with participating approved banks, will support targeted new loans (including increases to existing limits) to eligible businesses, as a response to difficulties caused by COVID-19.
Businesses with annual revenue between $250,000 and $80 million can apply to their banks for loans up to $500,000, for up to three years. The scheme will offer a total of $6.25 billion in loans to New Zealand businesses. The Government is guaranteeing 80% of the risk, while the banks are covering the remaining 20%. A normal lending process will be followed by the banks, which will make the lending decisions. Further details can be found on the banks’ websites.
You can find some commonly asked questions answered on this scheme on here.
If you have any questions, please get in touch with our friendly team, we are working from home and are more than happy to help!
Disclaimer: Please note this information is up to date in accordance with the posting date and time of this particular blog article. Any further updates released by the government and its associated ministries can be found on https://covid19.govt.nz