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In addition to recent Federal and States’ business financial support packages and loans – including JobSaver for NSW and Victorian businesses and Jobs Plus Program in NSW – there has been more news from the Morrison Government around additional help to small and medium sized businesses (SMEs). Those that continue to be affected with COVID-19’s economic impacts may be counted by the expansion of the eligibility requirements for the SME Recovery Loan Scheme.
The Government will remove requirements for SMEs to have received JobKeeper during the March quarter of 2021 or to have been a business impacted by floods to be eligible under the SME Recovery Loan Scheme.
It will be the same as the existing scheme whereby SMEs that are dealing with the economic impacts of the pandemic with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.
Other features of the Scheme include:
• The Government guarantee will be 80% of the loan amount.
• Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
• Loans can be used for a broad range of business purposes, including to support investment.
• Loans may be used to refinance any pre-existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
• Loans can be either unsecured or secured (excluding residential property).
• The expanded Scheme will enable lenders to continue supporting Australian small businesses when they need it most.
The loans will be available through participating lenders until 31 December 2021.
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Across Australia there are regions experiencing a historic transformation fuelled by a combination of significant investment in infrastructure projects and an increase in population. Western Sydney is an example where the economy has expanded to become the third largest in Australia, contributing $100b to Australia’s GDP or 8 per cent of total GDP.
