I must admit the full significance of this passed me by last week. I was under the impression that new business loans would be dead in the water for a long time. But this government policy effectively -mostly- socialises the risk and privatises the profits for any rag tag business loan!
https://www.interest.co.nz/opinion/1...ebtcredit-taps
"The latest government assistance is Finance Minister Grant Robertson's announcement of a $6.25 billion Business Finance Guarantee Scheme for small and medium-sized businesses (SMEs)."
"The Business Finance Guarantee Scheme has a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per annum, with loans for up to three years to be provided "at competitive, transparent rates." The Government/taxpayer takes on 80% of the credit risk, and banks 20%."
This is right down the middle of the road for O4B. Although the banks are ostensibly open, as I found out yesterday, all my local branches are closed with a notice up effectively saying 'do your banking on line'. Am I correct in saying that there is only one bank that will approve business loans on line?
Jeff might as well have drafted the small business support policy himself. I am not sure if I should now refer to Jeff as "Associate Finance Minister" or Grant Robertson as "Joint CEO of Heartland Bank". Either way I can see nothing but good coming out of this for Heartland shareholders. Jeff does it again!
SNOOPY
PS If I were Jeff, I would be refinancing some of those dodgy SME loans already on the Heartland books quick smart!