Business Finance Guarantee Scheme
The Business Finance Guarantee Scheme is a collaboration between the New Zealand Government and banks to provide loans to businesses that are financially impacted by COVID-19. This finance could help you get through this challenging period.
Any loans provided by Heartland Bank under this scheme will have 80% of the risk guaranteed by the Government – the remaining 20% will be covered by Heartland Bank. Please note that this doesn’t mean the Government is providing a guarantee to you. The guarantee is provided to Heartland Bank and you will be liable for repaying the full amount of this loan, as you normally would for any business loan.
Are you eligible?
To be eligible 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’ below)
not be party to a loan with another bank 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
Businesses can apply for loans:
of up to $5 million
with a term of up to five years
to be used to respond to or recover from the impacts of COVID-19
The loan cannot be used for:
on-lending or dividends to be distributed outside of your guaranteeing group
any of the ‘Excluded Activities’ (see the list of ‘Excluded Activities’ below)
repaying or refinancing more than 20% of your existing debt with Heartland
residential or commercial property development or investment
Loans under this Scheme are available until 31 December 2020.
‘Excluded Activity’ includes any of the following:
- 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; and
- any other illegal activity.
Lending criteria, T&Cs apply.
Need support with your existing Heartland Bank business loan?
If you need help to manage your existing Heartland Bank business loan repayments, find out more about Heartland Extend. We may be able to provide you with options to help you manage your cash flow and other commitments during this period.
Apply for a loan under the Business Finance Guarantee scheme
A loan under the Business Finance Guarantee Scheme can be used to help your business respond to or recover from the impacts of COVID-19.
The loan will not be available to fund any of the Excluded Activities, to fund distribution of dividends or on-lending outside of your guaranteeing group, repaying or refinancing more than 20% of your existing debt with us, or funding residential or commercial property development or investment.
To apply for a loan under the Business Finance Guarantee Scheme, you’ll need to provide us with information about:
- details of 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.
For loans over $100,000, we will request a General Security Agreement (GSA) over your business. This means that Heartland Bank will hold security over your business and all of its assets for the term of the loan.
If your GSA is held by another bank, then we recommend you speak with them first.