On Sunday night the government announced an overhaul of its coronavirus small and medium enterprise guarantee scheme. It will now allow banks to provide low-interest rate loans of up to $1 million for terms of up to five years whereas previously it allowed three-year loans of up to $250,000.
Commonwealth Bank chief Matt Comyn,who last week said support for small business would loom large in the government's thinking,said the expanded scheme would give businesses a deeper pool of financial support.
Loading
“It is clear from the challenges that we are currently facing in the Victoria that the recovery will not be as smooth or quick as first thought which is why it is essential we come up with creative solutions that offer small businesses,in particular,different ways to play their part in helping the country and Australians get back on their feet,"Mr Comyn said.
“Today’s lifting of the amount available to $1 million and the loan extension to five years will allow SMEs access to low-cost,guaranteed funding and to make the investments needed to get people back to work,create new jobs and lift confidence across the economy as part of the broader efforts to combat the impact of the coronavirus on our country.”
The chief executive of National Australia Bank,Ross McEwan,welcomed the revamp,saying:"The changes will make it available to more businesses,for longer,to help them rebuild – and support Australia's recovery."
In addition to Sunday's support for SME lending,banks expect the government will throw more support at the hard-hit small business sector,amid fresh warnings some firms will not be able to re-open following Victoria's second lockdown.