ASB asking business owners to put homes on line for loans

PHOTO: A business owner has told Newshub banks are acting like ‘wolves in sheep’s clothing’ when administering business loans.

Some hard questions are being asked over the actions of banks during these tough times.

The Government is throwing billions at the economy to keep it afloat, with policies including a mortgage repayment holiday, a wage subsidy scheme and a finance guarantee scheme offering businesses loans of up to half a million dollars.

Ditch unfair mortgage margins

But a business owner has told Newshub banks are acting like ‘wolves in sheep’s clothing’ when administering those loans – with one even asking business owners to put their own homes on the line.

The business owner, who Newshub has agreed not to name, applied for a government-backed loan from ASB to help his company survive the next few months.

“They’re asking for everything under the sun. I got asked for more personal guarantees and unlimited guarantees and if I had any property to secure the loan against,” he told Newshub.

That means if he didn’t pay back the loan, the bank could take ownership of his home. He says that’s a big ask, given these loans are 80 percent backed by the government.