The Morrison Government is continuing to back Australia’s small business-led recovery from the COVID-19 pandemic by extending the SME Recover Loan Scheme by a further six months to 30 June 2022.
Around 80,000 loans worth approximately $7.3 billion have been written to date since the scheme commenced in March 2020.
The extension of the scheme continues our unprecedented support for SMEs and will help even more businesses get access to the funding they need to adapt, innovate and bounce back from the impacts of the pandemic.
As with the existing scheme, SMEs who are dealing with the economic impacts of COVID-19 with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.
With our economy showing signs of a strong rebound as restrictions ease, the Government will reduce its loan guarantee from 80 per cent to 50 per cent, helping drive a private sector-led recovery.
Other key features of the SME Recovery Loan Scheme include:
- Lenders can offer borrowers a repayment holiday of up to 24 months.
- Loans can be used for a broad range of business purposes, including to support investment.
- Loans may be used to refinance any pre-existing debt of an eligible borrower.
- Loans can be either unsecured or secured (excluding residential property).
Extension of the scheme will complement our record investment incentives which allow for the full and immediate expensing of the cost of eligible assets.
The Morrison Government will continue to support small businesses as they seek to rebuild, adapt and create jobs as part of Australia’s economic recovery.