More businesses eligible for recovery loans up to $5m
The government has dropped criteria for its SME Recovery Loan Scheme, meaning more businesses with a turnover up to $250 million can have access.
The Scheme is designed to support economic recovery and to provide continued assistance to small and medium enterprises (SMEs) dealing with the economic impacts of the coronavirus crisis.
The Government has announced that, in recognition of the continued economic impacts of COVID-19, the current requirements for SMEs to have received JobKeeper during the March quarter of 2021 or to have been a flood-affected business in order to be eligible under the SME Recovery Loan Scheme will be removed.
The Scheme enhances lenders’ ability to provide cheaper credit, allowing many otherwise viable SMEs to access vital additional funding to sustain them the impact of COVID-19, recover and invest for the future. The Government will work with lenders to ensure that eligible businesses can access finance to maintain operations and grow.
Loans are available from 1 April 2021 until 31 December 2021.
The Scheme rules will be amended to reflect the updated eligibility and loans will be available through participating lenders once the changes become effective.
Please visit the Australian Government’s Treasury website for more information for SMEs and lenders.