(Please note the below are only temporary law changes).
Supporting the flow of credit (scheme commences early April 2020).
https://treasury.gov.au/coronavirus/business-investment for more updates in the future.
Under the Scheme, the Government will provide a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital. This will enhance these lenders’ willingness and ability to provide credit, which will result in SMEs being able to access additional funding to help support them through the upcoming months. SMEs with a turnover of up to $50 million will be eligible to receive these loans. The Government will provide eligible lenders with a guarantee for loans with the following terms: • Maximum total size of loans of $250,000 per borrower. • The loans will be up to three years, with an initial six month repayment holiday. • The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.