Major Australian banks start offering $250k loans for small-and-medium-sized businesses
Earlier this week, the Australian government announced a new coordinated effort “to support the flow of credit in the Australian economy, in particular for small and medium enterprises.”
With the help of Reserve Bank of Australia and the Australian Prudential Regulation Authority, the Australian government is offering 50 per cent guarantees on loans made by small-and-medium-sized business lenders.
Of course, there are important details that business owners need to consider before seeking these government-backed loans:
- Annual turnover may not exceed $50 million
- Maximum loan amount $250,000 per business
- Loan terms up to three years
- Initial 6-month delay on repayments
- Loan will be unsecured (no assets required for security)
The Government is also seeking to add a stipulation whereby borrowers will only be required to pay interest on funds they use, which will further reduce the amount of pressure small business owners are feeling during this time of need.
This Coronavirus SME Guarantee Scheme, as it’s officially known,is set to start early April 2020, and the registration deadline is scheduled for the end of September 2020.
Learn more about Australia’s Coronavirus SME Guarantee Scheme.