fbpx
Click here for the latest banking information on COVID-19

SME Loan Guarantee expanded: a welcome extension

20 July 2020

The ABA welcomes today’s announcement by the Morrison Government to extend the Coronavirus SME Guarantee Scheme.


“This will be welcome news for SMEs and opens up the scheme to those business who are looking to invest or need some extra support to get back on their feet”, said ABA CEO Anna Bligh.

“The banking industry will continue to work with the government ensuring the flow of credit into the economy and supporting those businesses who are still feeling the effects of the pandemic.”

ABA CEO Anna Bligh

“The banking industry will continue to work with the government ensuring the flow of credit into the economy and supporting those businesses who are still feeling the effects of the pandemic.”

SME Guarantee loans can now be larger, longer term and for a wider range of purposes. The initial phase of the Scheme remains available for new loans issued by eligible lenders until 30 September 2020. The second phase of the Scheme will start on 1 October 2020 and will be available until 30 June 2021.

Key October 1 changes to the SME Loan Guarantee include:
• Loans can be for a wider range of investment, beyond working capital
• Secured lending now permitted (excludes commercial or residential property)
• Maximum loan size increased to $1 million (from $250,000 per borrower)
• Maximum loan term now five years (from three years)
• Lenders can now offer a repayment deferral period.


How banks are extending their support.

Latest news

1 / 3
Media Releases
Flow of credit to small business remains strong
20 October 2020

Since February 1, Australian banks have approved over $41b for SMEs and sole traders. That’s an average of $5 billion per month.

Read more
Transcript
Today interview with ABA CEO Anna Bligh: “banks are very encouraged”
15 October 2020

Interview: Almost 45% of Australians who deferred their mortgages in June have begun repaying their loans.

Read more
Media Releases
Repayments have resumed on almost half of deferred loans
14 October 2020

Almost half of deferred loans are now being repaid again as Australians recover from the pandemic

Read more