Is your business finding it challenging to continue your Research & Development (R&D) activities due to COVID-19?
The Callaghan Innovation R&D loan scheme allows eligible businesses to borrow up to $400,000 to continue with R&D programmes in the current economic environment.
The application process is completed in two stages. Stage 1 requires initial details and an estimate of the amount you plan to borrow and Stage 2 requires detailed information about your R&D plans.
Loan details at a glance
Under the R&D Loan scheme:
- Businesses will be able to apply for a loan of up to $400,000 to support planned R&D activity, subject to other forms of government R&D support.
- The loans will be charged interest at 3% from the start of the loan, however, interest will be waived if the loan is repaid within the first year.
- Repayment instalments are not compulsory for the first three years, however, businesses may repay sooner if they wish. The maximum loan period is 10 years.
- Depending on demand and your complete filing of the appropriate documentation, loan pay-outs will follow Callaghan Innovation’s standard fortnightly payment schedule starting mid-July 2020.
To be eligible for the R&D Loan Scheme, businesses must:
- Be a legal New Zealand entity
- Have been in a financially solvent position as at 31 December 2019
- Be able to show that their ability to fund their R&D activity is impacted by COVID-19. This includes showing they have experienced a 30% or greater drop in expected sources of funding to support eligible R&D activities over the year ending 30 June 2021.
- Have had an R&D programme or plan in place before 26 March 2020 and plan to spend at least $50,000 on R&D.
For more information contact Great South Business Growth Advisor
For more information and assistance with the application process, please contact: