How banks are extending their support.
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.
More than 57,000 customers have received hardship assistance during recent lockdowns across Australia.
“Many people don’t realise how prevalent financial abuse is and that it may be a red flag for future violence.”