We’ve made lending available through the Government’s Business Finance Guarantee Scheme loan to help you and your business.
The Government has entered into an agreement with banks in New Zealand, under the Business Finance Guarantee Scheme, to support New Zealand businesses facing hardship as a consequence of COVID-19 to do one or more of the following:
It will assist customers who meet the eligibility criteria with financial support in the form of a loan.
You'll remain liable for the repayment of the loan including interest. The Government guarantee is in favour of Kiwibank. If you're unable to repay the loan, we'll first seek to recover the whole of the outstanding balance from you and any given security through existing recovery procedures. The Government will cover 80% of the risk and we'll cover 20% of the risk in the event of any shortfall.
The maximum loan amount is $5 million for a maximum term of five years.
However, each business is different so consider what loan your business will need based on your industry, the cost to reposition your business and how long it'll take to recover – i.e. what liquidity is required in the short and medium term?
The Business Finance Guarantee Scheme loans are available up to (and including) 31 December 2020.
Your business would:
Business Finance Guarantee Scheme loans are subject to credit and lending criteria.
The loan can't be used to fund any of the following:
If your application is successful, you'll be required to enter into Kiwibank's standard loan agreement and supporting documentation for this offer including providing any necessary security.
As with any loan, you'll remain responsible for paying the full amount including interest.
Regular loan repayments will cover principal and interest on your loan. Depending on your individual circumstances, there may be additional support options such as interest-only or repayment deferment available to you.
The maximum loan term is five years.
Normal bank lending criteria will apply.
We'll need information to make an assessment on your loan application. You'll need to supply us with your latest financial information, recent management accounts and your debtor and creditor positions. We require this information to understand how your business has been impacted by COVID-19 and your future plans.
An excluded activity means any of the following:
Subject to changes in Business Finance Guarantee Scheme loan rules.
Please complete our support form to apply for the Business Finance Guarantee Scheme loan and one of our business banking team will be in touch with you. You can also contact your Relationship Manager directly.