Loans for small to medium enterprises (SMEs) are available from 1 April 2021 until 31 December 2021 under the Federal Government’s SME Recovery Loan Scheme. The scheme is designed to support the economic recovery, and to provide continued assistance, to firms that received JobKeeper and also to firms that are eligible flood-affected businesses.
- SMEs with a turnover of up to $250 million that were recipients of the JobKeeper payment between 4 January 2021 and 28 March 2021
- SMEs that were affected by the floods in eligible LGAs in March 2021.
Both self employed individuals and non-profit businesses are eligible. Businesses that have accessed loans in phase 1 and phase 2 can also apply for loans under the scheme.
Participating lenders are offering guaranteed loans on the following terms under the SME Recovery Loan Scheme:
- The Federal Government guarantee will be 80% 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.
- Borrowers can access up to $5 million in total, in addition to the phase 1 and phase 2 loan limits.
- Loans are for terms of up to 10 years, with an optional repayment holiday period.
- Loans can be either unsecured or secured (excluding residential property).
- The interest rate on loans 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
Source:Tax and Super Australia
---
If you have difficulty with tax accounting, you can contact Allan & Co, we will help you out.
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: (02) 9709 5070