BUSINESS FINANCING GUARANTEE SCHEME

What you
need to know

TSB is a participant in the Business Finance Guarantee Scheme. The Scheme is for New Zealand businesses with a revenue (annual turnover) of up to $200 million which have been financially impacted by COVID-19. The scheme is designed to assist businesses to respond, position for recovery and recover from the impacts of COVID-19.
 

Key information: 

  • Maximum loan amount is $5,000,000 
  • Maximum term is five years 
  • TSB’s normal lending criteria apply, as well as the Scheme criteria 


The eligibility criteria for the Scheme includes: 

  • Your business has been negatively financially impacted by COVID-19 
  • Business must be New Zealand based 
  • You have an annual turnover of up to $200 million 
  • The loan purpose must primarily be operating expenses 


The Government Scheme excludes the following: 

Excluded activities: 

  • Businesses involved in property development and property investing
  • Local authorities, council-controlled organisations or a council organisation for the purposes of the Local Government Act 2002 
  • Other activities as defined by the Scheme 

Excluded loan purposes: 

  • Capital assets/projects, distribution of dividends, on-lending outside the borrower’s guaranteeing group or to refinance existing debt 

     


FAQs

Common questions
about the Scheme

  • What is the Business Finance Guarantee Scheme?

    The Business Finance Guarantee Scheme is a Government initiative designed to support the New Zealand economy respond, position for recovery and recover from the COVID-19 pandemic. Under the Scheme, businesses with annual revenue up to $200 million can apply for loans up to $5,000,000 for up to five years, to assist with cashflow and operating expenses. TSB is a participant in the Scheme and can offer qualifying customers these loans. 

  • How does the Scheme work?

    The Government is guaranteeing 80% of the risk associated with a qualifying loan, while TSB covers the remaining 20%. TSB’s normal lending process is followed and TSB makes the decision to lend.  
     

  • How does the Scheme benefit customers?

    TSB is committed to supporting our customers through the COVID-19 pandemic. Given the Government is guaranteeing some of the risk associated with qualifying loans, TSB can reduce the cost of lending to qualifying customers. 
     

  • Does the Government approve the loan?

    No, TSB’s normal lending criteria applies, along with some scheme specific criteria. Customers continue to work directly with TSB and no individual details are passed to the Government regarding applications. 
     

  • How long is the Scheme open for?

    The Scheme is open until 31 December 2020. 

  • How much can I borrow?

    Eligible businesses can apply once for a loan up to $5,000,000 under the Scheme and are subject to TSB’s credit and lending criteria, terms and conditions and fees. 
     

  • How long can I have the loan for?

    The maximum loan term is five years. 

  • How do I apply?

    Complete the online form and one of the team will be back in touch with next steps.

Have more questions?

If you'd like to know more about the Business Finance Guarantee Scheme before applying, check out business.govt.nz for more information.

BUSINESS.GOVT.NZ FAQS >

     

       

                                              

    APPLY FOR THE BUSINESS FINANCING GUARANTEE SCHEME
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