R&D funding

R&D Loan Scheme

open this image in new window: R&D Loans Scheme

Supporting R&D through COVID-19

This webpage is now focused on providing information to R&D Loan recipients.

Under the R&D Loan Scheme, businesses with R&D funding impacted by COVID-19 were able to apply for an R&D loan of up to $400,000 in order to maintain R&D Activities during the period 1 July 2020 to 30 June 2021. 

Applications are now closed

As the value of existing applications has exhausted the scheme's $149m limit, we are no longer accepting R&D Loan applications. 

If you are still needing R&D support, we encourage you to take a look at the other forms of R&D funding available such as Getting Started Grants, R&D Project Grants, the R&D Tax Incentive, and grants to bring on post Graduate students for R&D projects. You can find out more via our R&D Funding webpage.

Useful documents for recipients

PDF icon R&D Loan Scheme terms and conditions – This document is an example, for reference purposes, which may be subject to change

Year 1 reporting

Under the R&D Loan Scheme, businesses must report on their eligible R&D activities as outlined in your application, for the period 1 July 2020 to 30 June 2021 - regardless of your drawdown date. This will be done by way of questionnaire through our online portal and is due by 31 July 2021.

Please find an outline of the questions asked here in addition to the Directors confirmation template. If you are unsure about how anything in the application relates to you, please contact us.

Interest

R&D Loans are interest free if the loan is repaid in full within 12 months of the loan drawdown. Following this, interest will be charged in line with your contract. To avoid interest, email RDLoans@callaghaninnovation.govt.nz ahead of your 12 month deadline and we will send you repayment details. We can provide you with a range of options if you wish to reduce your interest costs. 

Repayments

You can start making repayments anytime, however regular repayments will be required from the start of year 4 of your loan. Closer to that date we will send you details of what your repayments are expected to be for the balance of the loan period. If you would like to start making earlier repayments let us know and we will provide you with the details.

If only a partial repayment is made, interest will be charged on the full balance until that repayment, and on the reduced amount from then.

 

FAQs

What if I have not completed all my R&D?

If you have not spent all of the loan funds on eligible R&D as set out in your application, your contract requires repayment of the unspent funds. If you have any concerns about this, please email RDLoans@callaghaninnovation.govt.nz

How do I repay my loan so that I am not charged interest?

R&D Loans are interest free if the loan is repaid in full within 12 months of the loan drawdown. Following this, interest will be charged in line with your contract.

To avoid interest, email RDLoans@callaghaninnovation.govt.nz ahead of your 12 month deadline and we will send you repayment details. We can provide you with a range of options if you wish to reduce your interest costs.

If I only partially repay the loan, is it still interest free?

R&D Loans are only interest free if the loan is repaid in full within 12 months of the loan drawdown. Interest will be charged on the full balance of the loan until the date of the partial repayment. Interest will be charged on the reduced balance of the loan thereafter. 

When do I need to make regular repayments and how much will they be?

You can start making repayments anytime, however regular repayments will be required from the start of year 4 of your loan. Closer to that date we will send you details of what your repayments are expected to be for the balance of the loan period. If you would like to start making earlier repayments let us know and we will provide you with the details.

What do I need to report on?

Under the R&D Loan Scheme, businesses must report on their R&D Activities for the period 1 July 2020 to 30 June 2021. This will be by way of questionnaire through our online portal and is due by 31 July 2021.

Please see the Year 1 reporting outline covering questions asked, in addition to the Directors confirmation template.

I am unsure if my activities are eligible

Your R&D Loan funds must be spent on eligible R&D activities as outlined in your application, in line with the R&D guidance provided in your application. If you have any concerns, please contact your customer manager.

Are there penalties if the loan is spent on non-eligible activities? 

The loan funds must be spent on eligible R&D activities. Not spending the funds on eligible activities is an Event of Default, which means you may be required to repay the loan in full immediately, which includes interest being charged additional interest on your loan. The Events of Default are set out at clause 11.1 of the terms and conditions.

What information needs to be retained for reporting and audit purposes?

You must retain all records concerning your expenditure on eligible R&D activities using the loan funding. This includes pay slips, time sheets, invoices, purchase orders, lease details and any other records that show how you spent the funds.

What are Events of Default?

The Events of Default are set out in clause 11.1 of the terms and conditions and include where you do not make a payment when due, if you relocate outside New Zealand or you spend the loan funds on expenditure other than Eligible R&D Activity. If an Event of Default occurs you may be required to repay the loan in full immediately, which could include interest (and potentially default interest) being charged. If you spend the loan funds on expenditure other than Eligible R&D Activity you will also be charged additional interest on your loan.

Can businesses use the funds for R&D done overseas?

A maximum of 10% of the loan funds can be spent on eligible R&D outside of New Zealand.

I don’t have a Callaghan Innovation relationship manager. What do I do?

R&D Loan applicants have an allocated relationship Manater. Please email RDLoans@callaghaninnovation.govt.nz with the subject heading‘Relationship manager’.

What is Callaghan Innovation’s privacy policy?

You can check out our privacy policy on our website.

I have another question

If you have a question that is not answered here, please email RDLoans@callaghaninnovation.govt.nz or talk to your customer manager.

Updated: 6 April 2021