SME’s Loan Recovery Scheme is a government incentive to the rescue of the finale of JobKeeper. With JobKeeper now finished, along with the upheaval of Corona-19 restrictions and lockdowns, many SME’s need finance assistance more than ever.
To date the Government has assisted with two loan schemes:
1. Coronavirus SME Guarantee Scheme
2. SME Recovery Loan Scheme
SME Guarantee Scheme
There have been two phases to the SME Guarantee Scheme. Phase 1 of the scheme commenced on 23 March 2020 and closed on 30 September 2020. Phase 2 commenced 1 October and continues till 30 June 2021.https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme
SME Recovery Loan Scheme
This scheme is an extension to the phase two of the Cornonavirus SME Guarantee Scheme. According to government website: “The scheme is only open to recipients of the JobKeeper payment between 4 January 2021 and 28 March 2021”. They are also opening this scheme to businesses with loans under the Phase 1 & Phase 2 providing they meet the criteria.https://treasurgov.au/coronavirus/sme-recovery-loan-scheme.
The following is a summary of some of the significant features the SME’s Recovery Loan Scheme is offering:
- Government will guarantee 80% of loan amount
- An increased range of lending purpose
- Lenders can approve deferred payments up to 24 months
- Businesses can borrow up to $5million (in addition to phase 1 & 2 of SME Guarantee Loans )
- Loan terms available up to 10 years
For more information refer to: https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme
How to Apply for SME’s Recovery Loan Scheme
These schemes are government guaranteed but they are not loans or funding from the government. The scheme is available from the government’s eligible list of lenders. Application criteria will vary depending on the lender’s requirements. Approval of funding will remain with your chosen lender. For more information on how to apply, visit Information for SMEs.
Business Finance brokers from Will Finance state that, “lenders are streamlining the process to make it easier to borrow.” Director, Will Haylock, says, “the lending criteria is quicker and easier than many business owners realise whether applicants are eligible for the SME scheme or not.
Will says that, “if your business has been operating for 1 year or more, then there is opportunities to grow and advance your income and business with the present flexible finance”.
Business finance is now more accessible for Australian SME’s. This is key for many SME’s recovery through these unprecedented times. Whether your eligible for the SME Recovery Loan Scheme or not, it has never been a better time to source finance with low interest rates and flexible payment schemes.