Small businesses are at the centre of Labour's plan for economic recovery with a raft of further measures to support SMEs to respond, recover and rebuild from the global impact of COVID-19.

Prime Minister Jacinda Ardern is in Tauranga today. She is currently at the Historic Village on 17th Ave where she is announcing details about the policy.

Watch above to see what she has to say.

The PM was met with a swarm of people, ranging in age from young children to the older generation, wanting to take a photo with her.

She took the time to talk to people, before getting down to business.

Labour Small Business spokesperson Stuart Nash says they took decisive action to cushion the blow of the pandemic with a strong health response.

He says supporting small businesses remains a central principle in the five point plan to keep New Zealand moving.

'We are now moving to the next phase to help small and medium enterprises adapt and innovate to the new business landscape.

'Improved cash flow support, new ways to drive digital transformation, and lowering costs and regulatory impacts are at the heart of our plans to help business bounce back faster.

Labour has outlined the proposed next steps in its plan to support businesses and jobs. See more detail below.

'SMEs have already responded enthusiastically to schemes like the wage subsidy, interest-free loans, tax refunds, a more flexible approach to tax, and access to professional advice," says Nash.

'Labour will expand the Small Business Cashflow Loan Scheme. It will be available for a further three years.

"The second year of the loan will be interest-free. We will also investigate more permanent sources of finance for SMEs."

The Historic Village is a hub for a number of small businesses in Tauranga.

'We will tighten regulations around merchant service fees charged by banks to retailers. Retailers are estimated to pay on average $13,000 more than their Australian counterparts each year on merchant service fees. This needs to change.

'The point where customers transact with businesses is a source of both health and economic concern. Contact-less payments give customers and businesses greater peace of mind as we all work to eliminate the virus.

Tauranga girl Bennett, 6, was stoked to get an autograph from Jacinda at the Historic Village this morning.

'Central government regulations are also in the frame as we undertake to put small businesses at the heart of decision-making. A dedicated cross-government unit will be tasked with ensuring all proposed new regulations are considered from the perspective of SMEs.

'Small businesses are the lifeblood of our economy and will continue to be at the centre of our policies. We will keep up the momentum of recovery."

Key elements for Labour's business plan include:

• Interest-free loans more widely available, zero-interest period extended
• Tighter regulation of merchant service fees charged to retailers
• More support for digital transformation of SMEs
• Promotion of digital commerce like e-invoicing and other innovative processes
• Government funding for tailored business advice
• Mitigate compliance costs to keep our number one spot for ease of doing business
• Overhaul the Accounting Income Method (AIM) tax regime to make it easier for SMEs to move to a ‘pay as you earn' model throughout the year