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17 December 2021
The federal government has extended its small medium enterprise (SME) Recovery Loan Scheme until June 2022.
The scheme is to help SMEs access funding to adapt and bounce back from the impacts of COVID-19. Businesses that have been negatively impacted economically by COVID are eligible. This includes those facing cash flow challenges bought on by the unprecedented material delays and cost increases.
Businesses 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.
Loans can be used for a broad range of business purposes, including refinancing of pre-existing debt. They can be either unsecured or secured (excluding residential property).
The government will guarantee 50 per cent of the loan. There is an option for a repayment holiday of up to 24 months.
The interest rate will be determined by lenders but will be capped at around 7.5 per cent, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.
To apply, contact your lender to see if they are approved to participate in the scheme.
More information is available from the Treasury website.