Government extends SME Recovery Loan Scheme
- Business News
The Federal government has extended the SME Recovery Loan Scheme by a further six months, running through to 30 June, 2022.
The Scheme supports the economic recovery and provides continued assistance to small and medium businesses dealing with the economic impacts of the COVID-19 crisis.
As a result of easing restrictions, the Government announced with this extension a reduction in its loan guarantee from 80 per cent to 50 per cent, aiming to “help drive a private sector-led recovery.”
Approximately 80,000 loans worth $7.3 billion has been written since it’s commencement in March 2020.
As with the existing scheme, small and medium sized businesses who are dealing with 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.
Key features of the SME Recovery Loan Scheme
- The Government guarantee will be 50% of the loan amount.
- Lenders can offer borrowers a repayment holiday of up to 24 months.
- Loans used for a broad range of business purposes, including investment support.
- Loans used to refinance any pre-existing debt of an eligible borrower.
- Borrowers can access up to $5 million in total, in addition to the Phase 1 and Phase 2 loan limits.
- Loans are for terms of up to 10 years, with an optional repayment holiday period.
- Unsecured or secured loan options (excluding residential property)
Find out more
To find out more on the SME Recovery Loan Scheme or to apply for a loan click HERE.
To learn more about how Elevate Accounting can help with your business, book your obligation free chat HERE.