Successful applicants will receive funding from the Challenge. Favourable loan terms and conditions will be negotiated with successful applicants on a case-by-case basis depending on funding needs, the risks associated with the business and other relevant factors that the Challenge determines.

UABS and Charles Bidwill are looking to create a fund that is sustainable over the long term in order to stimulate greater and faster growth of New Zealand’s SMEs. The Challenge will provide up to $1 million per annum; such investment to be allocated across one or more companies at the Entrepreneurial Challenge Investment Committee’s discretion. Possible terms that the Challenge may request as a condition of funding include:

• funding will most likely be on the basis of a convertible note
• repayment in full after three years;
• interest may be charged at a rate agreed with the Challenge. The Challenge is open to charging no cash interest on the condition that the applicant provides an option to purchase shares in the applicant’s company to the equivalent value of the interest foregone.