Federal Government SME Loan Scheme
The Federal Government's support for business lending has been expanded.
All SMEs with a turnover of less than $250 million, will be able to access loans of up to $5 million, which are supported by the Government's 80% guarantee.
The latest change removes the requirements for businesses to have received JobKeeper during the March quarter of 2021 or to have been a flood affected business.
On a stand alone basis, loans can be taken over a term of up to 10 years.
Scheme Parameters for SME's
Some key things for clarity include:
Loans backed by the Scheme will be available through participating commercial lenders. The Government is not directly in the lending process.
The decision on whether to extend credit, and management of the loan, will remain with the lender.
If a lender declines your application or you are not satisfied with the product on offer, you can approach other lenders.
The funds can be used for a broad range of business purposes, including refinancing. For more information visit:
https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme/lenders