Business Finance Scheme Loans

2022-01-10 18:12:06

Business Finance Scheme loans

We’re working with the Government to support businesses affected by COVID-19 (coronavirus). Together, we’ve set up the Business Finance Scheme (BFS), making more than NZ$1 billion of loans available to our business customers.

Enquire onlineMore business loan options

Eligibility

The scheme is available to eligible New Zealand-based businesses, that have been impacted by COVID-19, with an annual revenue of up to $200 million. Each eligible business can apply for a loan of up to $5 million. If you’re not eligible there are other financial assistance options that may suit your business needs.

Key points of the BFS loans

Loan terms range from 1-5 years at a special fixed rate.
Funds are limited, and the availability of loans is subject to certain exclusions 1.
You can repay in part or full at any time, with no early repayment costs.
Loans must be drawn down on or before 31 December 2020, or until the scheme funds have been allocated.
The loan must be for the purpose of one or more of the following:
- responding to the impacts of COVID-19
- positioning yourself to recover from the impacts of COVID-19
- recovering from the impacts of COVID-19.
We’ll require our usual security arrangements, which may include a General Security Agreement (GSA) and personal guarantees (where applicable).
You may refinance up to 20% of your existing BNZ business debt on the scheme2.
Each eligible business can only have BFS loans from one bank.

Things to consider when applying

If you’re thinking about applying for the BFS loan, consider how additional borrowing might impact your business plans. Some factors to consider include:

how your business has been impacted (cash flow, business operations, suppliers, customers)
what steps you have taken so far to lessen the impact (Government wage subsidy scheme, IRD small business cashflow scheme, reduced fixed and variable costs changes)
approximately how long it would take for your business to resume normal trading activity.

Exclusions

We’re not permitted to make BFS loans available to anyone engaged in:

residential or commercial property development and investment
being a local authority, a council-controlled organisation or a council organisation for the purposes of the Local Government Act 2002
the manufacture or distribution of recreational cannabis
the processing of whale meat
the manufacture of cluster munitions, anti-personnel mines, tobacco, and civilian automatic and semi-automatic firearms, magazines or parts
the manufacture or testing of nuclear explosive devices
any activity which is illegal in New Zealand
any other activity the Crown notifies us of in writing, with effect from the date of that notification (or the date as set out in the notification).

In addition, loans cannot be used to fund:

dividends or on-lending outside your borrower guaranteeing group
refinancing greater than 20% of existing debt, except for loans advanced on or after 16 March 2020 that meet other criteria (including the other criteria for BFS loans)2
loans of less than 90 days.

How to apply

We’re experiencing a significant increase in enquiries right now and are working to respond to these within 7-10 business days.

SMALL BUSINESSES

Complete the Business Finance Scheme enquiry form. One of our team will be in touch to discuss the application criteria and specific options available to your business.

PARTNERS

If you have a dedicated BNZ Partner, please get in touch with them via phone or email and they can guide you through the process.

INFORMATION DISCLOSURE

To be eligible for a loan, you’ll need to agree to our requirement to disclose information to the Crown and any government bodies (including government ministries and the Reserve Bank of New Zealand). This includes your personal information relating to BFS loans.

Enquire about a Business Finance Scheme loan

Options if you’re not eligible

ONLINE LENDING

You may be eligible to apply online for a business loan, credit card, or overdraft of up to $100,000, through QuickBiz3.

Find out more

ASSET FINANCE

You may be eligible for Asset Finance, which could release capital back into your business using equipment you already have as security, instead of personal or other business assets4.

Find out more

GOVERNMENT SUPPORT

You may be eligible for other types of Government financial support. Some options are: Wage Subsidy and Leave schemes, Small Business Cashflow Loan Scheme, and business cash flow and tax measures.

Find out more

Small Print

All businesses accessing BNZ Business Finance Scheme loans must be fully compliant with any applicable Common Reporting Standard (CRS) requirements.

Lending criteria, terms and fees apply.
The application of BFS loan funds for the following purposes is exempt from the 20% refinance limit:
- refinance of loans advanced on or after 16 March 2020 that meet other criteria (including other criteria for BFS loans)
- refinance of term loans and term facilities which mature during the availability period
- payments of BFS loan funds into an overdraft account (overdraft limits must remain in place)
- refinance of an existing BFS loan made to reflect the scheme terms.
QuickBiz is available for Business First term loan, MyMoney for Business, or Business First Transact overdrafts between $5,000 and $100,000.
Asset Finance minimum loan amount of $5,000 applies.

Call 0800 275 269 for general enquiries

Free phone, available 8am - 8pm Monday to Friday, and 9am - 6pm Saturday, Sunday and on public holidays.

For all services, products, and feedback.

From overseas, call +64 4 931 8209

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Eligibility

Key points of the BFS loans

Loan terms range from 1-5 years at a special fixed rate.

Funds are limited, and the availability of loans is subject to certain exclusions 1.

You can repay in part or full at any time, with no early repayment costs.

Loans must be drawn down on or before 31 December 2020, or until the scheme funds have been allocated.

The loan must be for the purpose of one or more of the following:

responding to the impacts of COVID-19
positioning yourself to recover from the impacts of COVID-19
recovering from the impacts of COVID-19.

We’ll require our usual security arrangements, which may include a General Security Agreement (GSA) and personal guarantees (where applicable).

You may refinance up to 20% of your existing BNZ business debt on the scheme2.

Each eligible business can only have BFS loans from one bank.

Things to consider when applying

If you’re thinking about applying for the BFS loan, consider how additional borrowing might impact your business plans. Some factors to consider include:

how your business has been impacted (cash flow, business operations, suppliers, customers)

what steps you have taken so far to lessen the impact (Government wage subsidy scheme, IRD small business cashflow scheme, reduced fixed and variable costs changes)

approximately how long it would take for your business to resume normal trading activity.

Exclusions

We’re not permitted to make BFS loans available to anyone engaged in:

residential or commercial property development and investment

being a local authority, a council-controlled organisation or a council organisation for the purposes of the Local Government Act 2002

the manufacture or distribution of recreational cannabis

the processing of whale meat

the manufacture of cluster munitions, anti-personnel mines, tobacco, and civilian automatic and semi-automatic firearms, magazines or parts

the manufacture or testing of nuclear explosive devices

any activity which is illegal in New Zealand

any other activity the Crown notifies us of in writing, with effect from the date of that notification (or the date as set out in the notification).

In addition, loans cannot be used to fund:

dividends or on-lending outside your borrower guaranteeing group

refinancing greater than 20% of existing debt, except for loans advanced on or after 16 March 2020 that meet other criteria (including the other criteria for BFS loans)2

loans of less than 90 days.