COVID-19 SME guarantee scheme extended
The Government underwritten cashflow loans for business was brought out months ago when COVID-19 started impacting our economy.
Eligible lenders are currently offering guaranteed loans up to 30 September 2020 on the following terms:
- Available to SMEs, including sole traders and not-for-profits, with a turnover of up to $50 million.
- Maximum total size of loans of $250,000 per borrower.
- Loans will be for up to three years, with an initial six month repayment holiday.
- Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
From 1 October 2020, eligible lenders will be able to offer loans during the next phase on the same terms as the current Scheme with the following enhancements:
- Loans can be used for a broader range of business purposes, including to support investment in a period of economic recovery.
- The maximum loan size will be increased to $1 million per borrower.
- Loans can be up to 5 years rather than 3 years and whether there will be a six month repayment holiday will be at the discretion of the lender.
- A loan can be either unsecured or secured (excluding commercial or residential property).
How to apply:
Contact your bank or finance company about products which they may be able to offer you. Also, feel free to contact our in house finance broker, Hugh Dellit from Link Advance, to discuss lenders who are offering these loans.