$6.25b Government-backed Loan Scheme
The Government has agreed to spend $6.25b on government-backed bank loans. The Government will cover 80% of the risk on each loan, thus limiting the bank’s exposure to 20%.
- Your business needs to have turnover between $250k and $80 million
- Maximum loan amount $500k
- Maximum repayment term of 3 years
- Businesses must have firstly exhausted their existing lending facilities with their bank
- New lending only (can only refinance existing debt if it was advanced on or after 16 March 2020).
- Loan cannot be used for capital assets/projects, distribution of dividends, on-lending outside of the borrower’s group.
- Sectors excluded from applying include property development, property investment, or agriculture (other than horticulture, viticulture or aquaculture, or services to agriculture)
Banks have advised that businesses will need to complete normal credit assessment processes which may take approx. 10 working days. Banks are likely to require the following information to support your application:
- Last financial statements for your business (profit and loss and balance sheet)
- A copy of your IRD tax summary
- A cash flow forecast detailing income and expenditure (minimum 3 months)
- A personal statement of position
- A personal income verification, e.g. Payslip, IR3
Please note that most banks are offering a range of financial relief measures and we are happy to help you investigate what may be of most benefit to you and your business.
If you would like some help, please get in touch. We encourage you to reach out early.