SME Loan Guarantee Scheme extended and expanded
9 April 2020
The ABA welcomes the official commencement of the SME Loan Guarantee Scheme.
Participating banks have been accepting applications from those eligible small businesses and not-for-profits in need of working capital to help see them through the COVID-19 pandemic.
Australian Banking Association CEO Anna Bligh said the scheme allows banks and other lenders to offer small and medium sized businesses new unsecured loans which have a 50% guarantee from the government, meaning these loans are able to be offered more cheaply and more freely compared to ordinary business loans.
“Banks stand ready to throw a lifeline to businesses across the country who are doing it tough through this COVID-19 crisis to help them to stay afloat and keep Australians in work,” Ms Bligh said.
“These loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
“Further, on these loans, no payments are required from the business for the first six months.
“These loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.”
ABA CEO Anna Bligh
“Access to cheaper loans will help many businesses with cash flow issues, particularly when it comes to paying staff prior to the activation of the Federal Government’s JobKeeper payments in May.
“Any small business with a turnover of up to $50 million, looking to bridge a gap in their cash flow, should contact a participating lender to discuss their eligibility and the features of this SME loan guarantee scheme,” she said.
The scheme will help small and medium businesses and not for profit organisations get fast access to working capital during the coronavirus pandemic and is available for new loans made by participating lenders until 30 September 2020.
ENDS
Latest news
Australian Banking Association CEO Anna Bligh: Today Australia’s banking system is coming together to launch the most comprehensive set of new anti-scam reforms. With a level of unprecedented cooperation, banks, commercial banks, building societies, credit unions, and mutual banks have joined together to commit to a set of anti-scam reforms to keep Australians and their… Read more »
Australian banks have joined forces to launch a new Scam-Safe Accord to deliver a higher standard of protection for customers and put scammers out of business in Australia. This Accord, between Australia’s community owned banks, building societies, credit unions and commercial banks is a comprehensive set of anti-scam measures across the entire industry. “This Scam-Safe… Read more »
Banks will contribute $19 million over three years to the Government’s voluntary financial counselling model announced today by Minister for Social Services, Amanda Rishworth. “Banks large and small are proud to be funding the lions share of this initiative.” said ABA CEO Anna Bligh. This funding will help increase the availability of free, independent counselling… Read more »