Current at 24 May 2022
What is the Business Growth Fund?
A $100 million funding package for SMEs to provide capital funding to support the growth of New Zealand businesses. The Government will purchase minority shareholdings in the successful SMEs, operating like a private equity fund but with more modest expectations on returns.
What does it mean for SMEs?
Its aim is to address a specific challenge for SMEs in accessing funds, targeted at businesses with innovative products and services, as well as SMEs requiring funding for growth, who have experienced resistance from traditional lenders.
SMEs can partner with the Government not only to access the required funding but to receive expert advice in realising the market opportunity. The Government announced that they would be an active investor in SMEs, providing support and networking opportunities, as well as access to growth capital.
How do I access the funds?
The criteria, application process, and organisations administering the funds have yet to be confirmed. However, the Minister for Small Business, Stuart Nash said that banks would own the funds and would refer SMEs to it. The banks have not yet been selected by the Government.
We will provide updates when more information has been released.
Stuff article outlining the Fund: https://www.stuff.co.nz/business/128682597/government-to-invest-100m-taking-stakes-in-small-businesses?cid=app-iPad
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