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Extended Government support for your business cashflow

Extended Government support for your business cashflow

Varun Kumar

The SME loan recovery scheme has been extended for a further six months to 30 June 2022 (from 31 December 2021). Under the extended scheme, the amount guaranteed by the Government will reduce to 50% (previously 80%) from 1 January 2022 – 30 June 2022.

SMEs with a turnover of less than $250 million who have been adversely impacted by COVID-19 may be able to access loans of up to $5 million over a term of up to 10 years. The requirement for an SME to be in receipt of JobKeeper payment between 4 January 2021 and 28 March 2021 has been removed.

Key features of the SME Recovery Loan Scheme include:
  • 50% Government guarantee
  • Lenders can offer borrowers a repayment holiday of up to 24 months.
  • Loans can be 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).
  • Interest rates will be determined by lenders, but will be capped at around 7.5%, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.
More information
If you would like to find out more about how this scheme may benefit your business, please contact your local Moore Australia advisor today.