New business loan funds launch
ASB and BNZ have expanded their support to help accelerate the recovery of customers who were heavily impacted by Cyclone Gabrielle.
Under ASB’s new $400 million lending program, corporate, business, and rural customers would be offered lending for a maximum term of two years, saving them up to 2% in funding costs, depending on individual circumstances.
“The devastation we have seen to farms, orchards, and businesses has a huge flow-on effect – at a community, regional, and national level,” ASB CEO Vittoria Shortt said. “The scale of destruction is immense, and it comes at a time when many customers are already grappling with added financial pressures.”
ASB’s new disaster relief comes after the bank announced support for personal and small business customers, including a temporary overdraft for weather-related expenses or hardship and $2,000 per household in one-off ex gratia payments.
BNZ’s new $1 billion recovery fund, meanwhile, is split into two parts, with $250m in low-interest loans available for affected BNZ business customers, and the remaining $750m available for all NZ businesses “to invest in their future and build back better, with a focus on resilience, growth, and sustainability.”
BNZ CEO Dan Huggins said loans of up to $5m are available to help NZ businesses rebuild and invest in initiatives that will future-proof their operations, such as green technology, renewable energy, or new infrastructure.
“We recognise the hardship caused by the recent devastating weather events and want to ensure that businesses in affected regions have access to the support and resources they need to get back on their feet,” Huggins said.
The low-interest resilience and recovery loans would be for terms of up to two years. Standard credit criteria apply for business customers wanting to access the loans.
To know more about the other severe weather support offered by BNZ, visit the bank’s website.
Have a thought about these new offers? Include it in the comments below.
