Question :
Hi Folks, Keen to understand what the R&D loan deal is that was announced in the budget, I have googled with no detailed answer. We are a tech business that invests a large percentage of our business in R&D costs we are Callaghan registered. Does anyone know? Cheers, Paul

Question submitted 15/05/20 @ 08:40am
Industry: COVID-19 Funding & Support
  • Morena – short/answer is Callaghan Innovation will release details shortly, and the programme will kick-off early June: Here is what I could find out – so far- the Government has put aside $150 million for a fund to provide loans to R&D-intensive
    businesses, to complement the existing R&D Tax Incentive.
    • The scheme is intended to encourage R&D-intensive businesses to retain as much of their existing R&D programme as they are able to. We expect most R&D performing firms will be able to access repayable loans up to the equivalent of 50% of a business’ annual
    R&D expenditure, up to a cap of $100,000.
    • The loans will be offered on favourable terms with the proviso that the money is used to conduct R&D. This recognises the value of R&D to New Zealand, and the difficulty many innovative firms have securing finance for high-risk R&D activity.
    • The scheme will be up and running by early June. Further details will be announced in coming days.

    Short summary – $100,000 loans capped, with it being 50% of what you are spending on R&D, repayable.

    Thanks Andrew!

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