Extension of SME loan Scheme up to end of 2022 Financial Year

The extension of this SME recovery loan scheme has been welcomed, and this is to be extended for a further 6 months. 

The scheme allows eligible businesses to obtain loans through banks and non bank lenders which will be guaranteed by the government.  To date over 80,000 loans have been provided, and 7.3 billion has been lent to eligible borrowers. 

Borrowers needed to have a turnover of less than 250M, and would be able to access loans of up to 5M over a term of up to 10 years. 

Under the Scheme, eligible businesses can obtain loans through participating bank and non-bank lenders with the backing of a Government loan guarantee.  

Around 80,000 loans worth approximately $7.3 billion have been written to date since the Scheme commenced in March 2020.

SMEs who are dealing with the economic impacts of COVID-19 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.

Some of the benefits are:

• A repayment holiday of up to 12 months.
• Loans can be used for many purposes including investment. 
• Loans can be used to refinance existing business debt. 
• Loans can be either secured of unsecured. 

The main change is the government guarantee has reduced from 80% down to 50% for the period 1 July 2022 to 30 June 2022.