Skip to main content
Financial Assistance Hub

New loan scheme good for small business

11 March 2021


Australia’s banks and small businesses have welcomed the Government’s new expanded loan scheme, saying it will help fuel the economic recovery.


The new SME loan guarantee scheme includes ten-year loans of up to $5 million with the option of a 24 month repayment holiday. The loans will be available to businesses which have been on JobKeeper between 4 January and 28 March.

Australian banks are working with the Government to deliver the loans, ensuring small and medium businesses have access to the cheap finance they need to survive the pandemic.

“The new phase of the scheme will make more businesses eligible and allow banks to provide more funding and support to businesses, particularly those still doing it tough”

ABA CEO Anna Bligh

“This is the right product for the times. It includes more flexibility, and will allow small businesses to re-stock, rebuild and recover”, said ABA CEO, Anna Bligh.

“The new phase of the scheme will make more businesses eligible and allow banks to provide more funding and support to businesses, particularly those still doing it tough”, Ms Bligh said.

The Council of Small Business Organisations Australia has also welcomed the new scheme.

“This sends a message to businesses that wish to perhaps expand their manufacturing base, or those businesses that are still going through a difficult time but know they have a viable business, that they can go to their bank and openly discuss their situation. It provides the flexibility that business people will need in these difficult times”, said COSBOA CEO, Peter Strong.


Expanded SME Loan Guarantee


Media Inquiries:
COSBOA [email protected]
ABA [email protected]

Latest news

1 / 3
Media Releases
Mid-sized banks set to benefit from APRA’s move to streamline IRB accreditation
23 October 2025

The ABA welcomes APRA’s proposals to make the internal ratings-based (IRB) accreditation process simpler and more transparent, giving mid-sized banks a competitive boost. ABA CEO Simon Birmingham said the changes would support competition and deliver better outcomes for customers. “This is a practical and sensible pro‑competition step from APRA,” Mr Birmingham said. “When fully implemented,… Read more »

Read more
Transcript
ABA CEO interview on Sky News Afternoon Agenda with Cheng Lei
17 October 2025

E&OEInterview on Sky News with Cheng Lei Cheng Lei: Australian banks closed 155 branches over the last year, but the rate of closures has slowed. For the implications, let’s bring in Australian Banking Association Chief Executive and former Liberal Minister Simon Birmingham. Mr Birmingham, welcome to the show – great to talk to you in… Read more »

Read more
Media Releases
Banks welcome focus on reducing regulatory burden
17 October 2025

Australian banks welcome the Federal Government’s release of an updated Regulatory Initiatives Grid, helping to ensure there is more transparency and coordination when new financial rules are introduced. The ABA particularly welcomes new principles that streamline coordination between regulators, reducing duplication and regulatory burden across the industry. ABA CEO Simon Birmingham said the Grid was… Read more »

Read more