SME RECOVERY LOAN SCHEME UPDATE

March 23, 2021

SME RECOVERY LOAN SCHEME UPDATE

March 23, 2020

SME RECOVERY LOAN SCHEME UPDATE

The Government’s new SME Recovery Loan Scheme has been devised to help small and medium sized enterprises (SME’s) that have been hit hard by the coronavirus (COVID-19) pandemic.

The scheme is an addition to the support already available and allows appropriate businesses to access finance when JobKeeper is phased out. Stating some substantial increases in key areas, including loan terms and loan size.

Eligible businesses will be able to use the scheme to refinance existing loans or for a range of other business purposes including maintaining and growing their business.

BENEFITS OF THE RECOVERY LOAN SCHEME

There are several key benefits of this scheme for suitable borrowers, including:

  • Borrowers can access up to $5 million per ABN.
  • Lenders can offer SME borrowers a repayment holiday of up to 24 months.
  • Loans are for terms of up to 10 years.
  • Loans can be either secured or unsecured (excluding residential property).

WHEN WILL THE RECOVERY LOAN SCHEME BE AVAILABLE? 

The SME Recovery Loan Scheme will begin as of 1 April 2021 through to 31 December 2021.

UNDERSTANDING THE ELIGIBILITY CRITERIA

The Government has set clear suitability criteria for the SME Recovery Loan Scheme. Businesses may be eligible if they:

  • receive a JobKeeper payment between 4 January 2021 and 28 March 2021.
  • have up to $250 million turnover.

Please note that the SME Recovery Loan Scheme must be used for purposes approved under the scheme. Learn more about the SME Recovery Loan Scheme through the government website.

For further information please reach out to the DFS team!

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