SME Recovery Loan Scheme
The Federal Government’s SME Recovery Loan Scheme is designed to support the economic recovery, and to provide continued assistance to SMEs with a turnover of up to $250 million that received JobKeeper payment between 4 January 2021 and 28 March 2021. The Scheme is enhancing lenders’ ability to provide cheaper credit
Participating lenders are offering guaranteed loans on the following terms
- The Government guarantee will be 80% of the loan amount.
- Lenders can offer borrowers a repayment holiday of up to 24 months.
- Loans can be used for a broad range of business purposes,
- 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.
- Loans can be either unsecured or secured
- The interest rate on loans will be determined by lenders, but will be capped at around 7.5 per cent
see Commonwealth Treasury website for full information: https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme