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.