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 under $80 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 $500,000
with a term of up to three years
to be used to meet your urgent working capital needs due to the disruption COVID-19 has caused your business
The loan cannot be used for:
capital assets or projects (other than business as usual expenditure which does not exceed 5% of the principal amount of the loan)
on-lending or dividends to be distributed outside of your guaranteeing group
refinancing of your existing debt (subject to a limited exception)
any of the ‘Excluded Activities’ (see the list of ‘Excluded Activities’ below)
residential or commercial property development or investment
Loans under this Scheme are available until 30 September 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 will only be provided to meet your urgent working capital requirements while you deal with the disruption to your business caused by COVID-19. The loans are intended to provide your business with support for current and upcoming operating cashflow needs, including things like rent and staff expenses.
The loan will not be available to fund any of the excluded sectors, capital assets or projects, distribution of dividends, on-lending outside of your guaranteeing group, or to refinance existing debt (subject to a limited exception).
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 working capital your business needs for the next three months
- 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.