The Small and Medium Enterprise (SME) Recovery Loan Scheme is designed to support businesses who received the final round of JobKeeper payments. It has also been expanded to assist businesses that were affected by the March 2021 floods and are located in specific disaster zones within New South Wales and Queensland.
Under the Scheme, businesses will have access to low-cost bank loans up to $5 million where the Government guarantee will be 80% of the loan amount. Lenders are able to offer businesses a deferral on repayments for up to 24 months and loan terms can be up to 10 years.
The interest rate on loans will be determined by lenders, however, they will be capped at around 7.5%, with some flexibility for the interest rate on variable rate loans to increase if market interest rates rise over time.
The Scheme is enhancing lenders’ ability to provide cheaper credit, allowing many businesses access to vital funding to help them get through the impacts of COVID-19 and invest for the future.
To be eligible, you must:
For a full list of the eligible Local Governments Areas, click here.
Eligible loan uses
Loans issued under the Scheme can be used for a number of business purposes to support investment, including:
Uses not permitted with the loan:
How to apply
All loans backed by the Scheme will be available through participating commercial lenders.
The Government is not directly participating in the lending process.
It is encouraged you contact your bank or approach a new lender to see if they are participating. If a lender declines your application or you are not satisfied with the product on offer, you can approach other lenders.
For full details on the SME Recovery Loan Scheme click the button below:
If you have any questions regarding the SME Recovery Loan Scheme, please give us a call on 03 5443 0344 or email email@example.com