Small and Medium Enterprises (SME) Guarantee Scheme
The Scheme will enhance lenders’ willingness and ability to provide credit and will be available for new loans made by participating lenders until 30 September 2020.
The Government will provide eligible lenders with a guarantee of 50% per cent of new loans. Some generic terms are:
Businesses with a turnover of up to $50 million.
Maximum total size of loans of $250,000 per borrower.
Loans will be up to three years, with an initial six month repayment holiday.
Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
Deferment of Loan Repayments for up to 6 Months
The banks are developing their own approach as to how to deal with requests from their clients for repayment holidays. Some are automatically granting the request, others are assessing the requests individually.
Instant Asset Write Off
An increase in the instant asset write-off threshold from $30,000 to $150,000 30 June 2020.
Reduced Interest Rates
Consider your current banking arrangements. The Reserve Bank has recently reduce the cash rate and lenders have passed this on to various loans they have.