Bank of New Zealand (BNZ) has announced a $1 billion fund to help accelerate recovery in the aftermath of Cyclone Gabrielle and the north island floods, and to support Kiwi businesses to invest in their future and become more resilient.

“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,” says BNZ CEO Dan Huggins.

“As New Zealand’s biggest business lender, we are committed to supporting businesses to not only recover from these recent weather events, but to emerge stronger and more resilient,” Mr Huggins says.

The Business Recovery and Resilience Fund is split into two parts, with $250 million in market leading low-interest loans available for affected BNZ business customers to meet their immediate recovery needs and help get back to normal trading conditions as quickly as possible.

This could be used while they wait on an insurance payout to help relieve financial pressures to accelerate operating recovery and support their staff, replenish stock or inventory, or support short-term cashflow needs.

The remaining $750 million is available for all New Zealand businesses to invest in their future and build back better, with a focus on resilience, growth and sustainability. Loans of up to $5 million are available to help New Zealand businesses rebuild and for investment in initiatives to future-proof their operations, such as green technology, renewable energy, or new infrastructure.

“With these low-cost business loans, we want to help accelerate the recovery efforts alongside the good work businesses are already doing to transition to more sustainable ways of working, whether that’s investing in more energy efficient machinery or developing more resilient infrastructure or supply chains.

"BNZ has a long history of supporting Kiwi businesses, and we remain committed to doing everything we can to help our customers succeed," says Mr Huggins.

In addition to the Business Recovery and Resilience Fund, BNZ is offering a range of support options to affected businesses, including:

• temporary overdrafts at 0% interest
• interest only repayments for business loans, up to a maximum of three months
• fee-free loan restructuring for current business lending
• alternative payment facilities for businesses unable to accept payments due to having damaged or disrupted EFTPOS machines, including BNZ Pay, which enables smartphone payments via a free app, and PayClip, a full-service standalone POS terminal with no fees for three months.

“We know that the road to recovery will take some time, but with the right tools and assistance, we believe that businesses can emerge from this challenging time stronger and more resilient. That is why we’re committed to providing our customers with not only immediate relief, but also the resources to ensure their businesses can thrive in the years ahead.”

Recovery Fund

To assist existing BNZ business customers to continue to operate and support their staff, replenish stock or inventory, or support short-term cashflow needs.

• $250m total fund for new lending only
• Available to existing BNZ customers impacted by the recent adverse weather events
• Low-interest loans for two-year term capped at $250,000 per customer
• No application or establishment fees
• Standard credit criteria apply

Resilience Fund

To assist new or existing BNZ business customer to rebuild and invest in initiatives with a focus on resilience, growth and sustainability.

• $750m total fund for new lending only
• Available to new and existing business customers
• Discounted rates fixed for up to 5 years capped at $5 million per customer
• Rate is dependent on credit rating and security
• No application or establishment fees
• Standard credit criteria apply

Other support

• BNZ has donated $250,000 to The Salvation Army to support communities affected by severe weather
• Personal temporary overdraft up to $10,000 with no Application Fee with 0.00% interest rate applied for 90 days, for customers with a home loan*.
• Personal temporary overdraft up to $5,000 with no Application Fee with 0.00% interest rate applied for 90 days, for customers without a home loan.
• Options for home loan customers, including reducing your repayments, interest only and a home loan deferral*.

*For more information and conditions visit: www.bnz.co.nz/contact/severe-weather-support

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