Frustrating times, you must be tearing your hair out with all this perceived bureaucracy.
Not sure when you talked to you bank last, rules did change May 1, new rules can be found here: https://www.business.govt.nz/covid-19/business-finance-guarantee-scheme/.
One key thing to remember is that the Govt is not guaranteeing loans to the end user, only guaranteeing to underwrite 80% for the bank. Normal lending criteria will apply. “The Government Guarantee does not limit the borrower’s liability for their debt.”
There are a ton of applications coming in for these loans to banks and they are swamped. Pays to keep hassling them and ideally not taking no for an answer (up to a point of course).
Chris above would be a good chap to have a call with as he is very experienced, talking to someone who can navigate their way through is important.
Also remember that there are two types of loans, Small Business Cashflow loan and a Business Finance Guarantee loan. You can apply for both.
What is the criteria for the loan?
Loans will be provided by banks to businesses that have urgent liquidity and bridging finance requirements caused by disruption to business as a result of COVID-19. See also: What loans will not be funded?
Is the Government guaranteeing the loan?
No. You will need to provide security for the loan as you would normally. The Government and participating banks have agreed to share the risk in case of default only.
What kind of security do I need to provide for the loan?
While banks remain in control of their own lending decisions and may have their own requirements, the Government original expectation that lending over $50,000 would require a general security agreement has been removed.
If the Government is guaranteeing the loan, why do I need to provide security?
The Government Guarantee does not limit the borrower’s liability for their debt.
The Government Guarantee only applies to any shortfall the bank has, after it has exhausted all normal avenues to recover the debt in the event of a default by the borrower.
Can I have both a Small Business Cashflow loan and a Business Finance Guarantee loan?
The schemes are complementary. Businesses should evaluate each scheme against their specific needs. The Government has funded specialist consultancy support services to provide advice to businesses who need it. You can use the Boost tool to find out what services are available in your region.