New Zealand businesses will receive further support to protect jobs and recover from COVID-19 with today’s launch of the Government’s R&D Loan Scheme.
Businesses will be able to borrow up to $400,000 to continue their R&D programmes under the scheme run by the Government’s innovation agency Callaghan Innovation, providing an immediate source of finance to businesses undertaking R&D projects.
“High-value R&D activity is important for a sustainable economic recovery, creating new and innovative export opportunities while lifting New Zealand’s productivity,” Research, Science and Innovation Minister Dr Megan Woods says.
“But when cashflow is tough, businesses face a hard decision to divert R&D spending and focus on short term needs. It’s also an uncertain time for R&D intensive startups who rely on external investment.
“We don’t want businesses to be forced to pause or cancel planned R&D work, especially now when it can make a huge difference to our recovery. We are determined to learn from the lessons of the past, where R&D-intensive firms cut R&D spend in response to economic downturn,” Megan Woods said.
Final details have been confirmed for the scheme which was announced in Budget 2020, with businesses now able to apply for an R&D loan of up to $400,000, depending on their planned R&D spend and other Government R&D support. Repayment instalments are not compulsory for the first three years, however interest will be waived if the loan is repaid within the first year.
“The $150 million Scheme is part of the Government’s wider suite of measures supporting businesses as they navigate their way through the impacts of COVID-19,” Megan Woods said.
“It will provide businesses working on R&D projects with a much-needed cashflow injection when it matters, so that this high-value innovation can continue.”
Stage 1 of the application process is open today – with loans being distributed from mid-July. Businesses can find out more via Callaghan Innovation’s website:
Media contact: Matt Greer 021 403 078