The government will provide participating lenders to SME with a guarantee for 80% of secured or unsecured recovery loans of up to $5 million for a term of up to 10 years.
The government will provide participating lenders with a guarantee for 80% of secured or unsecured loans of up to $5 million for a term of up to 10 years.
Interest rates will be capped at 7.5%, with some flexibility around variable rate loans. These loans can be used by the SME for a broad range of business purposes, including supporting investment and refinancing existing loans. Lenders will also be able to offer borrowers a repayment pause of up to two years.
To be eligible, SMEs (including self-employed individuals and non-profit organisations) will need to have a turnover of up to $250 million and have been either:
- Recipients of the JobKeeper Payment between 4 January 2021 and 28 March 2021; or
- Located or operating in a local government area that has been declared a disaster as a result of the March 2021 New South Wales floods and was negatively economically impacted.
This measure is an extension of the loan scheme first released in July 2020 as part of the Covid-19 relief measures.
