Bruce Billson said SMEs are now well positioned to the lead economic recovery as pandemic-related trading restrictions ease.
Under the extended scheme announced by Treasurer Josh Frydenberg, 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.
“Small businesses are working hard to get their businesses back up and running after a very challenging couple of years,” Mr Billson said.
“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.
“We hear first-hand from small and family businesses that access to finance allows them to invest and innovate.
“With the Australian Government guaranteeing 50 per cent of loans secured under the scheme, we hope this will increase lender appetite, particularly with a focus on growth and investment lending.
“We really want to see lenders make loans more accessible to small and family businesses, especially for those with clear growth and innovation plans and for ambitious new-to-bank customers seeking finance.
“Finance is the oxygen of enterprise and those with growth and investment ambitions need additional support.”
The SME Recovery Loan Scheme was extended on 13 December by a further six months to 30 June 2022.
Around 80,000 loans worth approximately $7.3 billion have been written to date since the scheme commenced in March 2020.
Other key features of the SME Recovery Loan Scheme include:
- 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).
- Extension of the scheme will complement our record investment incentives that allow for the full and immediate expensing of the cost of eligible assets.
