Federal Treasurer Josh Frydenberg says the extension of the scheme continues the government’s support for SMEs and will help even more businesses get access to the funding they need to adapt, innovate and bounce back from the impacts of the pandemic.
“As with the existing scheme, SMEs who are dealing with the economic impacts of COVID-19 with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years,” he said.
“With our economy showing signs of a strong rebound as restrictions ease, the government will reduce its loan guarantee from 80% to 50%, helping drive a private sector-led recovery.”
Under the extended scheme, 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.
Australian Small Business and Family Enterprise Ombudsman Bruce Billson said small and family businesses were well-positioned to lead the national economic recovery as pandemic-related trading restrictions ease, with targeted and ongoing support from the Australian government.
“Small businesses are working hard to get their businesses back up and running after a very challenging couple of years,” Mr Billson said.
“The good news is that COVID-19 conditions are finally settling and that is allowing small business owners to get on with what they do best – growing their business.
“The extension of the SME Recovery Loan Scheme will offer much-needed cash flow to small businesses, giving them a fighting chance at returning to full strength.”
A Findex survey of more than 500 SMEs found that seven in 10 businesses said government support packages had been important to the survival of their business and six in 10 businesses predicted that winding back government assistance would have an impact on their business.