In partnership with the New Zealand Ministry of Foreign Affairs and Trade, Business
Link Pacific launches today a new Finance Facility Service for Small and Medium
Sized Enterprises (SMEs). Through the Facility, the New Zealand Government is
investing 6.9M NZD to support the recovery of the private sector in the Pacific Islands
after the COVID-19 crises.
Business Link Pacific’s recent survey on access to SME finance and the impact of
COVID-19 has shown a deeply impacted sector in the region.
More than 90% of surveyed small and medium-sized businesses (SMEs) across the
Pacific Islands have reported a decline in revenue with just under half reporting
closure or expected permanent closure in the future, due to COVID-19.
The BLP service will be available initially in Tonga, Samoa, Kiribati, the Cook Islands,
the Solomon Islands, Papua New Guinea and Fiji.
The new Finance Facility service will enable access to capital for stabilisation,
recovery and growth of viable but financially distressed SMEs due to COVID-19’s
impact in the regional economy. Initially, the facility will offer adaptation grants,
concessionary lending and curated information on available SME financial services.
Adaptation grants applications are open now until the end of January 2021 via
https://finance.businesslinkpacific.com/adaptationgrants.
Concessional loans for SMEs will be available in the first quarter of 2021 through
selected local financial institutions.
In addition to responding to the current COVID crises, the BLP Finance Facility will
contribute to New Zealands’ long-term strategy to achieve a stable and prosperous
region in partnership with Pacific neighbouring countries and under the framework
provided by the Pacific Agreement on Closer Economic Relations Plus (PACER Plus).
Pacific Island countries face unique and historical challenges in participating in
international trade. PACER Plus intends to help overcome these challenges by
making it easier for countries to trade through a private sector that is more resilient
to external threats, such as COVID-19, and is able to create jobs and increase living
standards and wealth for families.
“We know SMEs have long-standing problems in accessing financial services due to
both demand and supply-side factors, overlain by significant gender-related issues.
These problems have become more acute since the onset of the COVID-19 crisis and it
is our hope that by launching this new service we will be able to break down some of
those barriers by supporting businesses to rebuild better with the right finance and
business advice,” says Steve Knapp, Director of Business Link Pacific.
“This new service will provide adaptation grants combined with concessional loans
delivered in partnership with regional and local financial institutions.
They will also be supported by our network of Business Advisory Services Providers
and in-Country Network Representatives,” says Knapp.
Business Link Pacific hopes this new service will allow more SMEs to access in-
country business advisory services in key areas such as financial management,
information technology, continuity planning and e-commerce in order to bounce
back from the pandemic.
Since Business Link Pacific was established in 2017, it has assisted over 2,500 small-
medium sized businesses with online Business Health Checks, Continuity Plans and
in-depth diagnostics. Also, it has facilitated 765 business advisory services subsidies,
and contributed to the creation of an estimated 890 new jobs; 49% which are filled by
women.
BLP invites SMEs in Tonga, Samoa, Kiribati, Cook Islands, the Solomon Islands,
Papua New Guinea and Fiji to visit https://finance.businesslinkpacific.com and find
more information about the BLP adaptation grants, including eligibility criteria for
SMEs and projects. Applications are open now until the end of January 2021.
Information about new finance services will be released during the first quarter of
2021.
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For more information about the programme or to arrange an interview contact:
Sandra Mendez, Head of Communications and Impact for Business Link Pacific on
sandra.mendez@businesslinkpacific.com
About Business Link Pacific:
BLP is a private sector development programme funded by the New Zealand Ministry
of Foreign Affairs and Trade, and aimed at supporting the economic growth of Pacific
Island countries.
The Business Link Pacific team is based in Auckland, New Zealand and is currently
supported by in-country partners in Vanuatu, Fiji, Samoa, Papua New Guinea,
Solomon Islands and the Cook Islands.
The over 110 business advisory firms members of the Business Link Pacific Advisor
Network have helped to create new products, supported many digital
transformations, and helped many businesses through a variety of crises, including
the onset of COVID-19, increasing economic growth across Samoa, Vanuatu, Fiji, Cook
Islands, Solomon Islands and Papua New Guinea.
Case studies and stories about the business talent in the PICs have been captured
and shared with the Business Link Pacific audience both in New Zealand and across
the Pacific Region, and can be accessed via the Business Link Pacific website.