SME Loan Scheme extended until June 30, 2022

The SME Recovery Loan Scheme was launched to assist SMEs to deal with the economic consequences of COVID-19. In an effort to further support Australia’s small business recovery from the pandemic, the Government has announced a proposal to extend on this scheme.

Currently, loans are available under the existing SME Recovery Loan Scheme from April 1 2021, to December 31 2021, with a Government guarantee of 80 per cent. Under the new scheme, loans will be available from January 1 2022, until June 30 2022, with a government guarantee of 50 per cent.

Key features of the SME Recovery Loan Scheme include:

• Lenders can offer borrowers a repayment holiday of up to 24 months
• Loans can by used for a broad range of business purposes, including to support investment
• Loans may be used to refinance any pre-existing debt of an eligible borrower.
• Loans can be either unsecured or secured (excluding residential property).

SMEs impacted by the pandemic with a turnover of less than $250 million can access loans of up to $5 million over a term of up to 10 years.

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Last updated: 18th December 2021