Don’t tough it out on your own
25 August 2021
The Australian Banking Association welcomes the Federal Government’s expansion of support for small and medium sized enterprises (SMEs).
The changes to the SME Recovery Loan Scheme (SMERLS) will allow businesses with a turnover of less than $250 million to access loans of up to $5 million over a term of up to 10 years.
The Government will remove the eligibility requirements for SMEs to have received JobKeeper during the March quarter of 2021 or to have been affected by flooding.
Anna Bligh, Chief Executive Officer of the Australian Banking Association said the expansion of support was important for businesses right across the country and allows banks to extend their assistance.
“This is an important loan scheme that’s helping Australian businesses fight their way through the pandemic,” Ms Bligh said.
“Broadening the eligibility criteria means banks can help more small and medium businesses, and that couldn’t be more important right now.”ABA CEO Anna Bligh
“These changes will make a real difference. Broadening the eligibility criteria means banks can help more small and medium businesses, and that couldn’t be more important right now.
“Australia’s economy bounced back strongly after the 2020 lockdowns and supporting SMEs now when they need it most will help the economy to rebound once again when lockdowns lift.”
There is a range of bank support available for businesses including;
- refunds of merchant terminal fees,
- the waiving of fees on cash deposits and farm management deposit accounts,
- Up to 3 month repayment deferrals, for business loans
- Payment deferrals for SME operators on their home loans to assist with cash flow
“The message from banks is clear. If you’re in need of assistance, talk to your bank. Don’t tough it out on your own,” Ms Bligh said.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”
“What is underpinning this bank failure is a number of things, but not least of all, it’s a very niche bank with high exposure to one part of the economy. And that’s the part of the economy that’s been quite volatile and troubled”
The Treasurer has indicated that the federal government is closely monitoring the situation.