Scott

The banks are definitely helping!
Completely understand where you are coming from and that as business owners, we are making huge sacrifices to stay operational, notwithstanding the fact that holding on to your loyal employees while having to navigate the current situation only compounds things.
I have personally spoken to senior bank employees at all the main banks and they are currently working out what their internal processes will be in terms of how this will be executed by their frontline bankers.
Each bank is at a different stage re-interpretation and execution.

I’d be more than happy to connect you to a senior banker at your bank that could help you with your requirements. Ping me on harry@vegalend.co.nz and I’ll intro you

Justin, you are correct re mortgage holidays

Bank’s will allow you to take a break of up to 6 months on your mortgage repayments, however what you will need to understand is the long-term impact on your home loan. The banks will accumulate your interests repayments and then add this to your home loan balance. This means you end up paying interest on interest in the long term. While this will certainly help in the short term, it will most certainly increase your mortgage pain in the long term.

Given the government will underwrite 80% of individual bank loans to eligible SMEs. Banks will underwrite the remaining 20%. So, in the event of a loan default, 80% of the losses will be borne by Government and 20% will be borne by banks. The scheme sees the Government take a large portion of risk-off banks to encourage them to keep lending. Banks will continue using their own lending criteria when lending to SMEs. This won’t be dictated by the Government.