23 Apr 2020

Coronavirus: Government guaranteed loans hard to get - Business NZ

From Morning Report, 6:39 am on 23 April 2020

Business New Zealand chief executive Kirk Hope says banks aren't making it easy for small and medium-sized operators to access loans through the Government's guarantee scheme.

The Finance Minister Grant Robertson announced the $6 billion initiative nearly a month ago.

It provides up to $500,000 for up to three years for businesses with annual revenues between $250,000 and $80m. Robertson told Morning Report yesterday that banks need to pick up the pace.

Business New Zealand says in order to get a loan, owners are being asked to provide cashflow projections for two years.

For some it's just too difficult due to the uncertainty, while others are simply being turned down.

RNZ political reporter Jo Moir spoke to chief executive Kirk Hope and started by asking what feedback he'd had from small and medium business owners about accessing loans.