Media Releases

Cash Splash for Small Businesses on The Beaches

July 21, 2020

Cash Splash for Small Businesses on The Beaches

The Morrison Government will help Northern Beaches businesses as they move into the recovery phase of the coronavirus crisis by extending the Coronavirus SME Guarantee Scheme which supports small and medium sized businesses (SMEs) to get access to the funding they need to adapt and innovate during the coronavirus crisis.

Under the existing Scheme, the Government is providing an unprecedented level of support to SMEs in partnership with 44 approved lenders by guaranteeing 50 per cent of new unsecured loans to SMEs. The Scheme has already seen more than 15,600 businesses accept loans worth $1.5 billion.

“Small and family sized businesses have been doing it really tough.” Mr Falinski has said.

“As businesses start to reopen and recover from the damages of this pandemic, they should know that the Federal Government is here to support them.”

The next phase of the Coronavirus SME Guarantee Scheme will help Northern Beaches businesses move out of hibernation, successfully adapt to the new COVID-safe economy and invest for the future.

Key changes to the Scheme include:

·         Extending the purpose of loans able to be provided beyond working capital, such that a wider range of investment can be funded;

·         Permitting secured lending (excluding commercial or residential property);

·         Increasing the maximum loan size to $1 million (from $250,000) per borrower;

·         Increasing the maximum loan term to five years (from three years); and

·         Allowing lenders the discretion to offer a repayment holiday period.

The extended terms of the Scheme will enable lenders to continue supporting Australian small businesses when they need it most. The expanded Scheme will shift from providing access to working capital to helping businesses stay afloat during the crisis to now also enabling them to access more affordable and longer-term credit so that they can invest for their future.

The initial phase of the Scheme remains available for new loans issued by eligible lenders until 30 September 2020. The second phase of the Scheme will start on 1 October 2020 and will be available until 30 June 2021.

The Morrison Government will continue to support small businesses as they seek to rebuild, adapt and create jobs on the other side of the coronavirus crisis.

Ends

 

 



Related Posts:
Media Releases
Honouring our World War Two Veterans
Jul 29, 2020
A special commemorative medallion marking the 75th anniversary of the end of the Second World War on 15 August is now available to every living Second World War veteran in Mackellar to say, ‘thank you for your service’.
Read more
Media Releases
Slater and Gordon… Oops
Jul 27, 2020
In front of today’s Parliamentary inquiry into litigation funder, Slater and Gordon tried to claim that the Treasurer, Josh Frydenberg, had met with the US chamber of commerce (who according to Slater and Gordon are “a foreign lobby group”).
Read more
Media Releases
More Funding to Support Northern Beaches Veterans
Jul 23, 2020
Northern Beaches MP Jason Falinski has provided a grant to the Northern Beaches Veterans Centre which will help to fund their essential support measurers.
Read more