The Federal Government has launched phase three of the SME Recovery Loan Scheme, as part of its commitment to supporting up to $40 billion in lending to Small to Medium Enterprises (SME).
This round of the scheme is specifically targeted at businesses that received JobKeeper payments in the March 2021 quarter with a turnover of up to $250 million – providing further options for those SMEs still struggling to recover.
“While South Australian SMEs are in a relatively strong position, there are a number of businesses that have felt the effects of restrictions and slowed pipeline, who could take advantage of the scheme’s low-cost finance options”, says BDO National Leader, Business Services and Credit Representative, Matt Laming.
The scheme provides access to 80 per cent government-backed, low-cost bank loans of up to $5 million at attractive terms (potentially with capitalising interest/repayment holidays for up to 24 months) from participating lenders.
The loans can be used for any business purpose, including refinancing existing business loans, but cannot be used to purchase residential property, financial products or for existing assets more than halfway into their effective life.
The complete list of participating lenders is yet to be announced, but the major banks have indicated they will take part and have released limited information about their offers.
“Rates offered will depend on factors such as the available security, loan term and whether repayment holidays apply”, says Laming.
“If you think you might be eligible, there could be value in confirming that you meet the criteria and applying for support.
“With eligible loan purposes focused on activities directly linked to your SME, it could be a way to invest in the future growth of your business.”
Every business is different, so it is important to seek advice to determine whether the scheme meets your funding needs and business structure.
Further information can be found at treasury.gov.au.
Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
BDO Finance Solutions (SA) Pty Ltd is authorised under BLSSA Pty Ltd Credit Licence 391237. BDO Finance Solutions (SA) Pty Ltd Corporate Credit Representative Number 478582. Aggregation services provided by Choice Aggregation Services. Matthew Laming Australian Credit Representative 478711.
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