THE SMALL BUSINESS LOAN SCHEME EXTENSION
The Small Business Loan Scheme was set to expire at the end of this year, but this has now been extended 3 years, and will now be available until 31 December 2023. The interest free period has also been extended from one to two years. For more details and how to apply click here. (The IRD are yet to update the new extended dates online)
Feel free to contact us on 03 374 9393 if would like to discuss if your business should apply.(if you haven’t applied already)
THE FLEXI-WAGE JOB SUPPORT PROGRAMME
The Government is investing an additional $311Million into expanding the Flexi-wage Programme. This programme will help increase the average subsidy paid to employers who take on a worker (who qualifies), and will support up to 40,000 people into work. They hope to roll out this programme prior to Christmas, but in the meantime, you can read some more information about this here.
THE RESERVE BANK HAS HELD THE OFFICIAL CASH RATE AND INTRODUCED A FUNDING FOR LENDING PROGRAMME:
The Reserve Bank announced they are holding the Official Cash Rate at 0.25%, and that they are bringing out a new Funding for Lending Programme that will start next Month.
The Funding for Lending Programme is essentially going to reduce the borrowing rate for the banks, (funded through bonds) and the expectation is that the banks will pass this onto businesses and households with reduced interest rates.
Since the housing demand is already so high, all banks have requested for the Reserve Bank Governor, Adrian Orr, to reinstate the loan- to value ratio (LVR) to help reduce demand. This is currently in the consultation process, but it could potentially be reintroduced in March 2020.
What will it mean if the LVR is reintroduced? It would mean you may need a higher deposit, or more equity, as the bank will tighten up how much you can borrow when purchasing property. This is mainly aimed at investors looking to purchase rental properties.
NEW $70M GOVERNMENT FUND TO HELP COMPANIES DECARBONISE
The Government has announced a new $70Million fund to help businesses decarbonise. Businesses are being encouraged to apply for funding through the Energy Efficiency & Conservation Authority to help reduce their costs for moving from coal and gas to clean energy for process heat. You can read more here.
FAST TRACKING INFRASTRUCTURE PROJECTS
Jacinda Ardern is looking to tick off more infrastructure projects over the coming weeks to help fast-track job creation. She has also instructed officials to start preparing options to help boost exports. You can read more about the $3Billion Government Infrastructure plan here.