Business Support Loan

We’re offering Business Support Loans to help our customers respond to, reposition or recover from the impacts of COVID-19.

The loans are being made available as part of the Government’s Business Finance Guarantee Scheme. The Scheme involves a range of participating banks and is designed to help protect jobs and support the economy.

Although Business Support Loans are 80% government guaranteed, we are still required by Treasury to assess each lending request in accordance with our standard policies, practices and processes.

You can now register your interest for a Business Support Loan.

Register your interest

For a list of frequently asked questions, including information on eligibility, exclusions and terms and conditions, please see here.

Key features and requirements

  • Each eligible business or business group can apply for a single loan of up to NZ$5,000,000.
  • Loans are available until 30 June 2021 or when all available funds are allocated (whichever is first).
  • The purpose of the loan must be primarily for businesses to respond to, prepare themselves for, or recover from the impacts of COVID-19.
  • You may use the Business Support Loan to refinance certain portions of your existing Westpac debt, subject to certain eligibility rules. For more information on the eligibility rules, please call us on 0800 606 606 (+64 9 375 9907 for overseas).
  • The maximum term of a loan is 5 years.
  • Special variable interest rates will apply. Discounted fees and charges may also apply.
  • This is a loan. As with any other loan, you remain responsible for repaying 100% of the loan and interest.
  • We'll require usual security arrangements. You may have to instruct your lawyer to assist us with these security arrangements.

For an overview of how the Business Support Loan works, please click here.

For more information on the Business Finance Guarantee Scheme please visit the Government’s COVID-19 financial support website.

 

Additional financial support for business customers

The Scheme is in addition to the following support options from Westpac:

  • Temporary overdrafts for business customers are available for up to 90 days. Up to $10,000 (for home loan customers) or $5,000 (for other customers).
  • Repayment relief on credit cards is available for customers who need help to manage their cash flow over this period. 
  • Early withdrawal from term investments is available for customers needing access to term deposit funds by providing 32 days’ notice. Requests can be for a full or partial withdrawal. For Term Deposits of 12 months or longer, customers can withdraw up to 20% of the original amount by providing 32 days’ notice and receive no reduced rate on the withdrawn amount.
  • Loan repayment deferral options are available 
    • Up to 3 month principal and interest repayment deferrals for Business Term Loans and Equipment Finance Loans (excluding FlexEquip) are available for customers with business lending of less than $1 million. Principal repayments and interest payments will stop for 3 months but the unpaid interest during this period will be added to the balance of your loan. 
    • Up to 6 month principal repayment deferrals (interest will continue to charge normally) are also available on Business Term Loans and Equipment Finance Loans (excluding FlexEquip) for customers with business lending of less than $1 million.
    • Please click here to fill in an online application form.

You should also talk to us about restructuring loans and access to working capital. For example, Equipment Finance allows eligible customers to restructure or extend loan terms for existing facilities, or use equipment as security to release capital back into their business.

If you require support please talk to your business manager or call us on 0800 606 606 (+64 9 375 9907 for overseas).

Other help

We’re taking other steps to help our customers who are feeling the financial impact of COVID-19:

  • On 1 September 2020, we introduced a new merchant service fee pricing system that will lead to savings for 10,000 small and medium business customers.
  • We’ve included a checklist to help our business customers understand how their transactional banking could be impacted by the current conditions - and ways to help mitigate those risks.
  • We have temporarily increased the PIN limit for contactless payments at retailers from $80 to $200. For more information, click here.

For important updates from the IRD visit their website, and see here for further information about Government financial assistance and links to other key agencies.

Frequently asked questions - Business Support Loans (BSL)

You must meet the following criteria (amongst others):

  • have annual turnover of up to $200,000,000
  • be a New Zealand based business
  • operate in a sector that is eligible under the Scheme.
  • use the proceeds of the BSL to respond to, reposition or recover from the impacts of COVID-19.

You must have or intend to have a full primary banking relationship with Westpac NZ and not have similar facilities at multiple banks.

Most sectors are eligible under the Scheme, but some are excluded, notably property development; property investment; the manufacture of tobacco; the processing of whale meat; recreational cannabis and the manufacture of firearms.

To support any loan application, it’s normal for us to seek certain documents to verify information we are relying upon to approve the loan. In order to ensure we are lending responsibly, the following information will be required to be able to assess your loan application, understand your position before the current COVID-19 disruption, the impact of the disruption on your business, and your plans for the future:

  • Last financial statements for the business (profit and loss and balance sheet).
  • IRD account summary statements of all tax types.
  • A cash flow forecast detailing income and essential expenditure (minimum 12 months).
  • A personal statement of position.
  • A personal income verification if applicable (e.g. IR3 or payslip).
  • Additional information may be required.

Banks participating in the Business Finance Guarantee Scheme are bound by the terms of the Scheme as set by the Treasury. As a responsible lender, we’re required to apply lending and eligibility criteria to ensure a Business Support Loan is an appropriate form of assistance. Therefore, we work with business customers to understand their position before the current COVID-19 disruption, the impact of the disruption on their business, and their plans for the future.

Yes. You can have more than one Business Support Loan, up to the maximum limit of $5,000,000 across each customer group. When considering your application for a Business Support Loan we’ll take into account all of your borrowings.
A Business Support Loan may be used to refinance up to 20% of existing debt with Westpac, subject to scheme and credit criteria.

Treasury have confirmed that borrowing under the Small Business Cashflow Scheme does not prevent you borrowing a loan supported by the Business Finance Guarantee Scheme. When considering your application for a Business Support Loan we’ll will take into account all of your borrowings.

Interest is payable on drawn amounts only.

The Business Support Loan is an on-call revolving credit facility available to be drawn down to your business transaction account. The loan is for a maximum time of five years and your total limit will reduce to zero over this time. Interest is calculated daily and charged monthly.
Westpac credit criteria apply, which may include the grant of security.

Please note: This is a loan. As with any other loan, you, the borrower, remain responsible for repayment of 100% of the loan and interest.
The Government is not providing a guarantee to you, the borrower. The Government guarantee instead supports the bank to lend more than we otherwise would at preferential pricing in uncertain economic conditions.
If you’re unable to meet your repayment obligations:

  • The Treasury requires Westpac to first seek to recover 100% of any outstanding loan balance from you.
  • If Westpac can’t recover 100% of the outstanding loan balance from you, then the Government guarantee allows Westpac to recover up to 80% of the shortfall from the Government subject to it being satisfied that Westpac has met certain due diligence requirements.

As with any other loan, any property given as security may be at risk if you are unable to meet your repayment obligations. You should not apply for an amount that you cannot comfortably afford to repay now and in the future.

A Business Support Loan will only be provided for you to respond to, reposition for, or recover from the impacts if COVID-19. The loan can provide for a businesses’ current and upcoming operating cash flow needs, including things like rent and staff expenses, or assist with repositioning the business to deal with the impacts from COVID-19.

The loan will not be available to fund excluded activities/sectors; repay or refinance an existing loan that was used for an excluded activity; distribution of dividends; or on-lending outside of the borrower’s group. There are detailed rules about the extent to which a Business Support Loan can be used to refinance existing debt.

The maximum loan limit of NZ$5,000,000 applies to:

  •  an individual business; or
  • a collective group of businesses where ownership is largely common and is considered by nature of security or commercial relationship to represent, for all intents and purposes, a single business.

Provision of this loan, up to the maximum NZ$5,000,000 limit per collective group, is at Westpac’s discretion.

Yes, subject to scheme and credit criteria. You may be able to refinance up to 20% of your existing debt with Westpac NZ plus any other loans that mature before 30 June 2021.

Yes. While the Government has given significant support to banks to allow lending under the Business Finance Guarantee Scheme, the Scheme requires that support loan credit assessment policies generally reflect the bank’s standard policies and therefore normal loan security will apply. This means as part of your loan application we will rely on existing securities you have provided, and we may need you to grant us additional security to support the request (including a general security agreement if we do not already have one, and guarantees where applicable).

As with any other loan, any security held by us may be realised if you are unable to meet your repayment obligations. You should therefore not apply for a loan amount that you do not believe you will be able to repay.