Support during Covid-19

The Business Relief Package

Banks are ready to support your business

SME Loan Guarantee Scheme Phase Three: Details

This new phase, announced 11 March 2021, will extend the length and size of loans available to businesses, increase the amount of eligible businesses, and increase the Government’s guarantee of each loan from 50% to 80%.

The initial phase of the Scheme was available for new loans issued by eligible lenders until 30 September 2020.
The second phase of the Scheme started on 1 October 2020 and was available until 30 June 2021.
The third phase of the Scheme began 1 April 2021 and will be available until December 2021.

Phase Three: Details

Loans must be approved between 1 April 2021 and 31 December 2021.
Business can apply for 10 year loans of up to $5 million.
These loans come with an option of a 24 month repayment holiday.
An eligible loan under the Scheme can take any form of credit (including overdrafts, working capital and revolving facilities, leases or hire-purchase arrangements), with the exception of a credit, debit, charge card or business card facility.
Loans may be used to refinance any pre-existing debt of an eligible borrower.

Full details at treasury.gov.au

About the package

More Phase Two COVID Support

SME Loan Guarantee Scheme

Participating banks are also offering loans, including overdrafts, at very low interest rates, to help bridge cash flow gaps. The SME Loan Guarantee Scheme continues until 30 December 2021.

JobKeeper

The Federal Government has also introduced a JobKeeper program. Under the scheme, businesses and not-for-profits significantly impacted will be able to access a wage subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income.

Download the JobKeeper fact sheet

FAQs

If you can start your repayments again at the end of your deferral, do.

If COVID has left you in difficulty and you need more time, talk to your bank.

While you work with your bank to restructure your loan you may be eligible for a further four-month deferral.

Learn more about the next phase of support.

Yes. Banks are offering loans at very low interest rates, supported by the Government, through an SME Loan guarantee. Your business would still need to meet certain lending criteria set out by your bank.

Banks don’t report information to credit bureaus about small business customers.