By Stephen Wright

WELLINGTON, New Zealand--Measures to support New Zealand businesses struggling because of the coronavirus pandemic will be extended or have a lower threshold for eligibility, the finance minister said, as unemployment increases.

New Zealand had record job losses in April when most businesses were shuttered and economists say there could be a second wave of unemployment as government-funded wage subsidies expire in coming weeks.

A new eight-week wage subsidy that is set to start on June 10 will have a reduced requirement of a 40% fall in revenue for businesses to qualify, down from 50%, Finance Minister Grant Robertson said Friday.

The change means up to 230,000 businesses with some 910,000 workers will be eligible. The existing wage subsidy, which expires soon, required a 30% fall in revenue for businesses to qualify.

New Zealand on Friday reported its 14th consecutive day of no new coronavirus cases. The Cabinet will decide on Monday whether to remove remaining pandemic restrictions--with the exception of the border closure--which could help speed up economic recovery.

The Ministry of Health said the last known case of community transmission of the virus in New Zealand was a person who tested positive on April 29. It said it would take 28 days of zero cases following the end of that person's quarantine on May 18 to be confident that "chains of transmission" had been eliminated.

The government has spent about 11 billion New Zealand dollars ($7.1 billion) on wage subsidies since March, covering 1.66 million employees. The second subsidy will cost between NZ$2.6 billion and NZ$3.9 billion.

Mr. Robertson also said that the deadline for small businesses to apply for interest-free loans from the government has been extended by more than a month to July 24.

About NZ$1.2 billion of loans have been made to small businesses so far.

Mr. Robertson said the measures will particularly help tourism businesses which are suffering because of the closure of New Zealand's border. 



  Write to Stephen Wright at stephen.wright@wsj.com