The government has made offers to 34 lenders wishing to participate in the Coronavirus SME Guarantee Scheme to help provide small businesses access to working capital to get through the impacts of the COVID-19 pandemic.
Under the scheme, lenders can provide eligible SMEs unsecured loans of up to $250,000 for as long as three-year terms, with no repayments for the first six months. The government guarantees 50% of each loan so the funding can be offered more cheaply and more freely then regular business loans.
The following 22 lenders have finalised their involvement:
All lenders with an existing SME business lending line can apply to participate in the scheme, at which point the government and APRA consult on how to move forward. There are no fees for lenders to submit applications or participate in the scheme.
Some confirmed lenders, such as Heritage, have clarified the loans provided through the scheme will be available to both new and existing customers.
“Heritage has always been a bank that specialises in meeting the needs of small businesses. Our Business Banking team is focussed on the SME sector, so we understand how small businesses work and the challenges they face,” CEO Peter Lock explained.
“That’s why we’ve been so keen to offer this new SME Support Loan, which gives small businesses an extra option they can draw on to get through the cashflow issues that the COVID19 has created.
“We want to help these smaller operators meet the challenges they now face and come out of our current situation in a good position to thrive in future.”
