fbpx
You Have Plans - We Have Steps To Help You
SME Recovery Loan Scheme for COVID-19 Impacted Brands

SME Recovery Loan Scheme for COVID-19 Impacted Brands

With the recent events of COVID-19 impacting global and Australian economies, many small-scale brands are struggling to stay in business. That’s why the Australian Government expanded the qualifications for the SME Recovery Loan Scheme.

Now, applicants will need to submit less paperwork and requirements to qualify for the SME Recovery Loan Scheme for businesses with JobKeeper Payments starting from March 2021.

SME Recovery Loan Scheme in a Nutshell

For starters, the SME recovery loan scheme allows loan applicants to get cheaper loans with more degrees of freedom since it’s an unsecured loan. The Federal Government also designed the loan scheme to support SMEs that the pandemic badly impacted.

The early loan scheme phases took off last March 2020 as the SME Loan Guarantee Scheme, where the federal Government only guarantees half of the total loan amount.

Furthermore, the latest SME recovery loan scheme iteration allows SMEs with less than $250 million of turnover to qualify for loans more than $5,000,000 for up to a 10-year loan term.

Small and medium enterprises can also get the following benefits:

  • Up to two years of repayment holidays for borrowers
  • More freedom on where you want to use the loan, including a potential investment
  • Refinance an outstanding debt
  • Get approved for unsecured or secured loans, not including residential properties as security.

How can the SME Recovery Loan help my business?

The latest government reports show that the recovery loan program wrote roughly $6.2 billion for more than 74,000 loan grants. It means that countless SMEs in Australia have already benefitted from the program.

Participating banks and lenders, including Westpac and the National Australia Bank, showed support by following the scheme changes. Both lenders and other key players believe the SME recovery loan program will help brands with more funding stay afloat in these turbulent times.

However, interested SMEs and loan applicants should remember that participating lenders will only accept applications until December 31, 2021.

If you want to discover how the SME Recovery Loan Scheme can help your brand through the pandemic, we at Plan A Mortgage are more than willing to lend a hand. Feel free to speak with us today, and we’ll discuss how you can apply through the right participating lender.

Disclaimer

This article presents content in a general nature and is solely for informative purposes only. It does not aim to provide public nor personal financial or tax advice. It does not include nor put into consideration your situation nor circumstances. Before taking an active decision, seek expert advice and thoroughly examine your current position. Moreover, this article is protected by intellectual property and copyright laws and should not be reproduced without prior written consent.

Categories

Archive

Call Now ButtonCall Plan A Mortgage