Expanded SME Loan Guarantee
11 March 2021
Australia’s banks and small businesses have welcomed the Government’s new expanded loan scheme, saying it will help fuel the economic recovery.
The new SME loan guarantee scheme includes ten-year loans of up to $5 million with the option of a 24 month repayment holiday. The loans will be available to businesses which have been on JobKeeper between 4 January and 28 March.
Australian banks are working with the Government to deliver the loans, ensuring small and medium businesses have access to the cheap finance they need to survive the pandemic.
“The new phase of the scheme will make more businesses eligible and allow banks to provide more funding and support to businesses, particularly those still doing it tough”
ABA CEO Anna Bligh
“This is the right product for the times. It includes more flexibility, and will allow small businesses to re-stock, rebuild and recover”, said ABA CEO, Anna Bligh.
“The new phase of the scheme will make more businesses eligible and allow banks to provide more funding and support to businesses, particularly those still doing it tough”, Ms Bligh said.
The Council of Small Business Organisations Australia has also welcomed the new scheme.
“This sends a message to businesses that wish to perhaps expand their manufacturing base, or those businesses that are still going through a difficult time but know they have a viable business, that they can go to their bank and openly discuss their situation. It provides the flexibility that business people will need in these difficult times”, said COSBOA CEO, Peter Strong.
Media Inquiries:
COSBOA [email protected]
ABA [email protected]
Latest news
The ABA welcomes today’s consultation paper from APRA on proposed changes to bank credit risk capital settings, which have the potential to support more lending and lift productivity. ABA CEO Simon Birmingham said the consultation was a welcome step towards a more efficient capital framework while still retaining the underlying strength and stability of Australia’s… Read more »
E&OETV InterviewSky News Business Weekend with Ross Greenwood21 June 2026 Topics: Economic contribution of banks Ross Greenwood: Well Australia’s banks, love them or loathe them, they are a necessity. We need them strong to provide the security for lenders and depositors. We need them well-regulated to keep them from again putting profit ahead of their… Read more »
ABA CEO Simon Birmingham delivered the following introductory remarks ahead of a panel on the value of banking to the Australian economy, launching new Mandala research, at the 2026 ABA Banking Conference. Our piece of work that has been released today, Mandala providing the intellectual backdrop and analysis to support us in this, the essential… Read more »