Flow of Credit supported through Coronavirus SME Guarantee Scheme

Go to Website: treasury.gov.au/coronavirus/business-investment

Flow of Credit supported through Coronavirus SME Guarantee Scheme. Under the Coronavirus SME Guarantee Scheme, the Government is supporting up to $40 billion of lending to SMEs by guaranteeing 50 per cent of new loans issued by eligible lenders to SMEs.

The Scheme is enhancing lenders’ ability to provide cheaper credit, allowing many otherwise viable businesses to access funding to get through the impact of Coronavirus, recover and invest for the future.

Phase 1 of the Scheme provided SMEs with access to unsecured working capital loans as they faced significant challenges due to disrupted cash flows, and was available for new loans from 23 March 2020 to 30 September 2020.

The Government has extended and enhanced the Scheme to enable continued support for businesses in recovery and for those facing the ongoing impact of the pandemic. As part of this extension, the Government has made targeted amendments to the Scheme’s parameters to meet the evolving needs of businesses.

Phase 2 of the Scheme will continue to support lenders’ ability to provide credit and ensure that SMEs benefit from lower interest rates. Phase 2 commenced on 1 October 2020 and will be available for loans made until 30 June 2021.

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