The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme, now in its second phase, is supporting up to $40 billion of lending to SMEs by guaranteeing 50 per cent of new loans issued by participating lenders.
Participating lenders are offering guaranteed loans on the following terms:
- Loans can be used for a broad range of business purposes, including to support investment.
- Borrowers can access up to $1 million in total.
- Loans are for terms of up to 5 years, and a repayment holiday is not required but can be offered at the discretion of the lender.
- Loans can be either unsecured or secured (excluding residential property).
- The interest rate on loans will be determined by lenders, but will be capped at around 10 per cent, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.
Phase 2 of the Scheme will continue to support lenders’ ability to provide credit and ensure that SMEs benefit from low interest rates and is available to SMEs, including sole traders and not-for-profits, with a turnover of up to $50 million from 1 October 2020 until 30 June 2021.
For the full details of the scheme, including participating lenders, go to : https://treasury.gov.au/coronavirus/sme-guarantee-scheme
We would be pleased to assist with providing you with any support, assistance or advice relating to loan applications. If you need help, please contact:
CEO | RBG