Treasurer Josh Frydenberg announced the extension of the scheme – which allows SMEs impacted by the pandemic with a turnover of less than $250 million access to loans of up to $5 million over a term of up to 10 years – on Monday (13 December).
ASBFEO Ombudsman Bruce Billson welcomed the news, saying it is an added bonus as COVID-19 conditions continue to ease.
“The extension of the SME Recovery Loan Scheme will offer much-needed cash flow to small businesses, giving them a fighting chance at returning to full strength,” Mr Billson said.
“We hear first-hand from small and family businesses that access to finance allows them to invest and innovate.
“With the Australian Government guaranteeing 50 per cent of loans secured under the scheme, we hope this will increase lender appetite, particularly with a focus on growth and investment lending.”
Mr Billson further called on lenders to make locals more accessible for small and family businesses, particularly businesses with “clear growth and innovation plans” as they need more support.
“It is support for small businesses such as the SME Recovery Loan Scheme, that is contributing to making Australia the best place to start, grow and transform a business,” he said.
