What Support Can You Receive?
The Australian Banking Association (ABA) has announced that Australian Banks will support both you and your business through this tough period, with various measures implemented. Below we have listed the main measures available that could provide relief for you and your business:
- Deferral of loan repayments - Australian banks can defer loan repayment for six months for small businesses. Banks are also offering deferral of personal home loan repayments for up to six months. Please contact your bank to confirm their deferral terms and your eligibility.
- Interest rate cuts - in line with the RBA cash rate cut by 0.25 basis points, interest rate cuts have been passed on through most (if not all) major banks within Australia.
- Low Interest Rate Loans (SME Guarantee Scheme) - The Government will provide a guarantee of 50 per cent to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital. Maximum loan of $250,000 per borrower, loan term of up to 3 years with 6 month repayment holiday, and is in the form of an unsecured finance i.e. no security is required to be pledged towards the loan.
- Support for larger businesses - businesses with total business loan facilities of up to $10 million (up from the $3 million small business threshold) will also be able to defer business loan repayments for six months. Please contact your bank to confirm their deferral terms and your eligibility.
- Help for commercial property owners - commercial property landlords,with total loan facilities of up to $10 million, can get relief as long as you provide an undertaking to the bank that for the period of the interest capitalisation, you will not terminate leases or evict current tenants for rent arrears as a result of COVID19. Please contact your bank to confirm their deferral terms and your eligibility.
For further FAQs answered by the ABA, see here.
We suggest you contact your bank to see how these measures can apply to you, your business and your personal circumstances. According to the ABA, the above measures have been implemented to 98% of all businesses with loans with an Australian bank. Get in touch with your bank today to discuss your eligibility.
If you would like to discuss any of these measures and what they mean for you and your business, our team is available to assist you. Please don't hesitate to talk with us on (02) 4229 2211 or you can send us your inquiry online.