Senator Paul Scarr has welcomed the Morrison Government’s additional support for small and medium sized businesses (SMEs) in the Ipswich region to deal with the economic impacts of COVID-19.
Senator Scarr said the expanded eligibility for the SME Recovery Loan Scheme announced today by Federal Treasurer Josh Frydenberg removed requirements for SMEs to have received JobKeeper during the March quarter of 2021 or to have been a flood-affected business in order to be eligible under the SME Recovery Loan Scheme.
Senator Scarr said, as with the existing scheme, SMEs dealing with the impacts of COVID-19 would be able to access loans of up to $5 million over a term of up to 10 years. He said other key features of the SME Recovery Loan Scheme included:
- The Government guarantee will be 80 per cent of the loan amount.
- Lenders are allowed to 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, including those from the SME Guarantee Scheme.
- Loans can be either unsecured or secured (excluding residential property).
Senator Scarr said the expanded Scheme would enable lenders to continue supporting small businesses when they needed it most.
He said the SME Recovery Loan Scheme built on earlier loan schemes introduced during COVID-19, under which around 74,000 loans totalling $6.2 billion were written.
The loans will be available through participating lenders until 31 December 2021. The expansion complements other financial support the Commonwealth is offering to businesses impacted by the current COVID-19 health restrictions.
The Morrison Government will continue to support small businesses as they seek to rebuild, adapt and create jobs on the other side of this crisis.
More information: SME Recovery Loan Scheme | Treasury.gov.au
ENDSSenator Scarr: Bruce Mills 0408 713 610
