Expanded SME Loan Guarantee
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.
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ABA [email protected]
“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“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.”