SME Guarantee Scheme - Liquidity measures
24/03/2020
The Federal Government has announced the Coronavirus SME Guarantee Scheme as part of its “Supporting the Flow of Credit” economic response to COVID-19.
How does it work?
The Coronavirus SME Guarantee Scheme is designed to provide support to otherwise viable SME businesses that have had their cashflows impacted by COVID-19. Under the Scheme, the Government will provide a guarantee of 50% of the value of a new unsecured bank loan. The object of the scheme is to enhance the lender’s willingness and ability to provide credit.Eligibility Criteria and details
The Scheme is only available to SMEs with a turnover of up to $50m. Loans will have the following terms:- Maximum size of loan is $250,000 per borrower
- Loans will be for terms up to 3 years, with an initial six month repayment holiday
- Loans will be unsecured
Applications
SMEs will be required to contact their bank in order to apply for these loans. Financial Institutions are currently determining how the loans will be processed, but we would expect this to be done through their frontline staff. To apply, in addition to providing the lender financial information typically sought when obtaining finance, taxpayers will need to provide evidence that their aggregated turnover is below $50m. To discuss your eligibility and how we can provide support to your business during this time, reach out to your ShineWing Australia expert.Contacts
Matt Birrell |
Stephen O'Flynn E [email protected] |
Daniel Minihan E [email protected] |