SMEs given easier access to $5m loans

Small and medium enterprises (SMEs) now have easier access to loans of up to $5 million through a Federal Government scheme aimed at relieving financial stress during COVID-19.

Federal Treasurer Josh Frydenberg announced an expansion of the SME Recovery Loan Scheme, stating that businesses will no longer need to have received JobKeeper wage subsidies or have been affected by floods to access the loans.

The loans, available for businesses with a turnover of less than $250m, have already been delivered to thousands of businesses affected by the pandemic – to the value of $6 billion.

Under the scheme, the Federal Government guarantees up to 80 per cent of the loans, distributed by major lenders, and provides a lower interest rate than in the market.

The Treasurer told media on Wednesday (August 25) the scheme was designed to provide a much-needed reprieve to businesses affected by lockdowns and border closures.

“Many people have their life savings on the line through their small businesses, and in many cases their homes,” he said.

Businesses will have repayment holidays of up to two years to pay off the loans.

More information is available from the Australian Treasury.

Detailed analysis on the WA economy is available from CCIWA’s Economic Insight page.

Share This Post

You may also be interested in

Grants up to $15m for decarbonisation-focused projects
Grants up to $15m for decarbonisation-focused projects
Projects focused on decarbonisation have been given a boost with grants of up to $15 million.
Read more »
Visa program helps WA businesses recruit skilled UK workers 
Visa program helps WA businesses recruit skilled UK workers 
WA businesses can recruit skilled migrants from the United Kingdom without needing sponsorship arrangements and skilled occupation lists.
Read more »
Business achieves progress on ‘nature positive’ changes
Business achieves progress on ‘nature positive’ changes
The Federal Government’s decision to commit to full public consultation for most of its ‘nature positive’ reforms is welcome news to businesses.
Read more »