We understand that as business owners you have
a lot on your mind right now, so we want to let you
know that we’ll do our best to take care of your banking.
We’re here to help our business customers financially affected by COVID-19. On this page you’ll find a range of assistance options that could benefit your business.
We’re offering Business Support Loans to help our customers respond to, prepare themselves for, 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.
For a list of Frequently Asked Questions, including information on eligibility, exclusions and terms and conditions, please see here.
For more information on the Business Finance Guarantee Scheme please visit the Government’s COVID-19 financial support website.
For an overview of how the Business Support Loan works, please click here.
The Scheme is in addition to the following support options from Westpac:
Businesses 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.
Business customers requiring support should talk to their business manager or call us on 0800 606 606 (+64 9 375 9907 for overseas).
We’re taking other steps to help our customers who are feeling the financial impact of COVID-19:
Businesses must meet the following criteria (amongst others):
You must be an existing Westpac NZ customer to apply for a Business Support Loan.
Most business sectors are eligible under the scheme, but certain sectors 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 is 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:
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 are 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 other loans with Westpac NZ, as long as facility limits remain in place but you can only have one loan supported by the Business Finance Guarantee Scheme. When considering your application for a Business Support Loan Westpac NZ will take into account all of your borrowings.
You may not use a Business Support Loan to refinance existing debt unless that falls due for repayment prior to 31 December 2020 in accordance with its terms, or you are refinancing a short term loan made on or after 16 March 2020.
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 Westpac NZ 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 are unable to meet your repayment obligations:
As with any other loan, any property given as security may be repossessed 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 the business to respond to, position themselves for, or recover from the impacts if COVID-19. The loan is intended to provide for a businesses’ current and upcoming operating cash flow needs, including things like rent and staff expenses.
A Business Support Loan will not be available to fund excluded activities/sectors; capital assets or projects; 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:
Provision of this loan, up to the maximum NZ$5,000,000 limit per business, or for a collective group, is at Westpac’s discretion.
No. The rules of the Business Finance Guarantee Scheme do not allow consolidation of existing debt. Neither can it be used to refinance existing debt unless that debt falls due for repayment prior to 31 December 2020 in accordance with its terms, or you are refinancing a loan made on or after 16 March 2020 that had a term no longer than 180 days.
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.