Loans for businesses impacted by COVID-19 under the Government’s SME Recovery Loan Scheme.
The SME Recovery Loan Scheme provides support to businesses impacted by COVID-19.
Loans can be used to invest, buy commercial property or to acquire another business. Eligible customers may be able to refinance existing business loans1. Applications close 31 December 2021.
Businesses that are adversely economically affected by:
To apply your business must:
You have the option to defer loan repayments for 6 or 12 months. You can request an extension to your repayment deferral, which we will reasonably consider, provided it doesn’t extend the period beyond 24 months.
Once you reach the end of your loan repayment deferral period, accrued interest and fees will be added to your loan facility and you’ll be required to start making loan repayments.
Not during the repayment deferral period but once interest is added to the loan at the end of the period, interest will be charged on the total balance.
Yes, interest will accrue during the loan repayment deferral and will be added to the loan balance at the end of the period.
Yes, provided they meet the eligibility criteria.
Residential Property is defined in the rules of the Scheme and means land or a building that is, or is capable of being, occupied as a residence for residential accommodation in whole or in part, other than:
(a) a hotel, motel, inn, hostel or boarding house;
(b) premises used to provide accommodation in connection with a school;
(c) a ship that is mainly let out on hire in the ordinary course of a business of letting ships out on hire;
(d) a ship that is mainly used for entertainment or transport in the ordinary course of a business of providing ships for entertainment or transport;
(e) a marina at which one or more of the berths are occupied, or are to be occupied, by ships used as residences;
(f) a caravan park or a camping ground; or
(g) anything similar to property described in paragraphs (a) to (f).
Note: land or buildings in (a) to (f) are eligible to be financed under this Scheme.
Loans issued under the Scheme can be used to refinance existing loans or for a broad range of businesses purposes including:
Loans cannot be used to:
Yes, eligible borrowers can access up to $5 million, in addition to the Coronavirus SME Guarantee Scheme Phase 1 and Phase 2 loan limits.
The SME Recovery Loan Scheme specifically provides support for businesses who are adversely financially affected by the coronavirus pandemic or the March 2021 floods. The Scheme introduces increases in loan size and loan terms allowing lending up to $5m and 10 year loan terms. It also provides the option to defer repayments and allows for refinancing of existing debt.
Under Phase Two of the Coronavirus SME Guarantee Scheme loans were limited to $1m and 5 year terms, and you couldn’t refinance existing debt.
Eligibility, credit criteria, fees, charges, terms and conditions apply.
* Business must be located or operate within a relevant Local Government Area. Check the Treasury website for a list of Flood Affected Government Areas under the scheme.
1. Excludes facilities secured by residential property or facilities that are more than 30 days in arrears.
2. An interest rate premium may apply where a payment deferral period is selected. Interest will accrue during the period of the repayment deferral.
3. Other fees and charges apply.
4. Depending on security offered and whether a repayment deferral applies. Security supporting these loans excludes residential property.