RETAIL LAW UPDATE: COVID-19 SME Guarantee Scheme extension
The Treasurer has announced a post-September tailoring of the Covid-19 SME Guarantee Scheme to serve more businesses. The Scheme will be available for new loans made by participating lenders until the new extended deadline of 30 June 2021.
It will now also allow banks to provide low-interest rate loans of up to $1 million for terms of up to five years whereas previously it allowed three-year loans of up to $250,000. This is with the intention to support a larger number of small and medium-sized businesses adapt and innovate during the coronavirus crisis.
The initial phase of the scheme remains available for new loans issued by eligible lenders until 30 September 2020, with the second phase of the scheme to kick off on 1 October 2020 and run until 30 June 2021.
Details of the original scheme can be found here.