Big Banks Announce New Lifelines for SME’s

Overview:

Three of Australia’s major banks have come to the table with new lifelines designed specifically to keep small to medium sized businesses afloat over the coming months as the coronavirus impacts become increasingly evident to their working capital positions, productivity and bottom line.

The initiative works hand in hand with the federal government’s newest $66 billion economic stimulus plan, unveiled yesterday. It enables SME’s to gain an unsecured commercial loan, partially guaranteed by the federal government during this time of crisis.

This policy, is additional to other measures taken by the Reserve Bank of Australia and the Australian Banking Association in a bid to provide relief to SME’s, as communicated in an Insights article released on Friday.

The newly established plan proposes that the federal government will guarantee 50 per cent of new loans granted by qualifying banks to small to medium sized businesses for working capital. This will equate to a government contribution of up to $20 billion, in support of $40 billion worth of loans for business.

Significantly, the new SME loans will be structured to provide interest free for the first six months, interest only in the following six months, with principal and interest only payable in the final two years of the loan.

Perks Banking & Finance Director, Bruce Debenham urges Perks SME clients and all SME business owners alike, to get in contact with their broker, adviser or bank as soon as possible to see what is available to support them through this difficult time.

“This support could potentially save your business and the jobs that rely upon it. Now is a critical time to get in contact with your broker, adviser or bank and open the lines of communication about gaining financial assistance for the uncertain months to come, the longer you leave it the harder it will get – communication right now is critical,” says Bruce.

Get in contact with the Perks Finance Team today, either by phone 08 8273 9300 or online, to discuss how these support mechanisms could help your business throughout this time of economic crisis.