What is the Business Finance Guarantee Scheme?
The Business Finance Guarantee Scheme is a collaboration designed to provide loans to businesses which have been affected by COVID-19. Here are some of the features:
- Up to 5-year terms with flexible payment options
- Borrow from $5k to $5 million
- Low interest rates, no fees
- New customers welcome
- Respond to COVID-19
Are you eligible?
To qualify for the Business Finance Guarantee Scheme, your business must:
- be New Zealand based
- have an annual turnover of up to $200 million
- not be involved in an ‘Excluded Activity’ (see the list of ‘Excluded Activities’ in the FAQ section)
- not be party to a loan with another bank or non-bank deposit taker made under the Business Finance Guarantee Scheme
- not be classified by us in the following categories: residential property investor or developer, or commercial property investor or developer
- not be a local authority, council-controlled organisation or a council organisation
Loans under this Scheme are available until 30 June 2021.
How do I apply?
- 1. Complete the easy online application.
- 2. Provide your business financial and supporting information.
- 3. We’ll verify the information you’ve given us and conduct any further checks required.
- 4. If approved, we’ll send you your loan documents to sign electronically.
- 5. We’ll verify your identity with our facial recognition technology.
- 6. You’ll get the funds deposited into your nominated account!
Got more questions?
- Which sectors are eligible to apply for the Business Finance Guarantee Scheme?
- Most business sectors are eligible under the scheme, but certain sectors are excluded. These include property development, property investment, the manufacture of tobacco, the processing of whale meat, recreational cannabis, the manufacture of firearms, and any activity illegal in New Zealand. See the full list of excluded activities below
- What can the loan be used for?
Loans cannot be used for:
- Distributing on-lending or dividends outside of your guaranteeing group
- Repaying or refinancing more than 20% of your existing debt
- Residential or commercial property development or investment
- Any of the ‘Excluded Activities' listed in the section below
- What are the ‘Excluded Activities' under the Business Finance Guarantee Scheme?
- Manufacture of cluster munitions, anti-personnel mines or civilian firearms, magazines or parts
- Manufacture or testing of nuclear explosive devices
- Manufacture of tobacco
- The processing of whale meat
- Manufacture or distribution of recreational cannabis
- Any other illegal activity
- What information do I need to provide with my application?
To apply for a loan under the Business Finance Guarantee Scheme, you'll need to provide us with information about:
- The bills you need to pay, including the amounts per month
- How much funding your business needs
- Whether you have applied for or have received the Government wage subsidy package
- Any arrangements you've made with other creditors (including your business premises landlord)
- Your business' tax status.
- Will the loan need to be secured against my business assets?
Yes, we will discuss this with you at the time of your application.
Normally for loans over $100,000, we will request a general security agreement (GSA) over your business.