Understand your funding options

There are different ways to fund a project. We will work with you to decide what funding type is the most appropriate for your project.

Investment types

It's likely there will be a number of differing types of investments made under the PGF.


An investment delivers a public benefit but has no revenue stream. For example, an investment in capability development or in a road improvement could be a non-commercial investment.


An investment generates a revenue stream, but this is insufficient to be funded by the private sector.


An investment may be viable for the private sector, but we invest to create a public benefit that would not otherwise occur.

Funding types

The right form of funding for your project will depend on whether it's commercial, non-commercial, and the likely outcomes of the project.


Non-commercial projects will in general be funded through grants.

Feasibility studies – projects that will help define and scope future, larger projects – are also likely to be funded via grants.


Debt is our preferred method of funding quasi-commercial and commercial projects (noting there may be some extra caveats for transport projects). Loans will be made available to projects on suitable and agreed terms. We will look for debt collateral that is as strong as possible.


We may be able to ‘underwrite’ the risk of a project; this is likely to take the form of guaranteeing a certain outcome for a project, lowering the risk for other potential investors. We are more likely to underwrite projects in order to accelerate them by making their parameters more certain, rather than in solely financial terms.

For example, if a project estimates a certain volume of visitors to generate a certain level of revenue for a project, the PGF may decide to underwrite that revenue risk to guarantee a certain revenue stream.


In some circumstances, we may be able to take an equity position (part-ownership) in a project. Usually, this will be where the project cannot support further debt, or where there is sufficient extra return from the project which the Government should benefit from.

Attracting third party investors

We may be able to help match your project with potential investors.

Provincial Growth Fund loans

Why does PGF give businesses loans?

  • The Provincial Growth Fund aims to unlock potential in Regional New Zealand and businesses are a key source of economic growth.
  • We assess the merits of every application and importantly, we consider a range of public benefits, which commercial banks typically don’t need to.
  • Public benefits could include the contribution to regional economic growth, job creation, skills development and improving cultural and social indicators. 
  • We work with applicants and their commercial lenders, particularly where we can help accelerate a project, or bring a long-planned project to fruition.

What interest is charged on PGF loans?

  • The terms of the loans, including interest rate and tenure, are arranged between the successful applicant and the Crown.
  • Interest rates on loans, much like home mortgage terms, may vary throughout the term and also therefore, between projects depending on the industry, value and estimated length of the project.

Will details of loans be publicly released?

  • Funding from the Provincial Growth Fund is approved in principle and announced, after which contracts are negotiated. Some funding may depend on completion of business cases.
  • This is the case regardless of whether funding is being provided in the form of a grant or a loan.
  • The Provincial Development Unit is working with the Office of the Ombudsman to ensure that our approach to releasing information is timely and appropriate.  
  • Withholding commercially sensitive information during negotiations is standard practice. It is important to protect the Crown’s negotiating position to ensure public money is being spent wisely.
  • Once contracts are executed and sensitivity around commercial details has reduced, we will proactively release more information. 

Will the loans be repaid back to the Provincial Growth Fund?

  • Yes, loans are structured so interest and principal are repaid to the PGF.

What else does PDU expect in return for loans?

  • To receive PGF funding, projects have to meet a range of criteria like creating jobs in the region and all must stimulate regional economies.
  • Where possible, the PDU supports local firms and operators getting preference in these projects.

The PGF expects value for money when contracting with third parties.