The federal government has expanded its SME Recovery Loan Scheme, removing requirements for businesses to have received JobKeeper this year or to have been affected by flooding.
The relaxation of eligibility requirements is in response to the ongoing effects of COVID‑19, Treasurer Josh Frydenberg said in a statement.
Under the new guidelines, the loan scheme will continue to provide access to loans of up to $5 million over a 10-year period to SMEs with a turnover of less than $250 million that are experiencing financial hardship due to the effects of the coronavirus. T
he federal government will guarantee 80% of the loan amount, which participating lenders can offer as unsecured or secured loans.
Sefa is the only participating approved lender in the federal SME Schemes with a social purpose.
The loan scheme also allows lenders to offer borrowers a repayment holiday of up to two years.
Businesses can use the loans to cover a range of business expenses, such as to support investment and refinance pre-existing debt, including debt from the SME Guarantee Scheme.