The Government has recently extended the SME Recovery Loan Scheme by a further six months (to 30 June 2022) to support SMEs adversely economically affected by the Coronavirus Pandemic.
Under the Scheme, eligible businesses can obtain loans through participating bank and non-bank lenders with the backing of a Government loan guarantee.
Around 80,000 loans worth approximately $7.3 billion have been written to date since the Scheme commenced in March 2020.
SMEs who are dealing with the economic impacts of COVID-19 with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.
Other key features of the Scheme include the following:
❑ Lenders can offer borrowers a repayment holiday of up to 24 months.
❑ Loans can be used for a broad range of business purposes, including to support investment.
❑ Loans may be used to refinance any pre-existing debt of an eligible borrower.
❑ Loans can be either unsecured or secured (excluding residential property).
Importantly, the Government’s loan guarantee has been reduced to 50% (down from 80%) for loans available from 1 January 2022 until 30 June 2022.
If you need help with your SME Loan contact us for a FREE Business Planning Session and start charting your business success path.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.