Australian Government Backed Line of Credit

Australian Government SME Recovery Loan Scheme Information

The Government’s SME Recovery Loan Scheme is designed to support the economic recovery, and to provide continued assistance to SMEs that are dealing with the economic impacts of the coronavirus crisis.

Participating lenders are offering guaranteed loans on the following terms under the

• The Government guarantee will be 80% of the loan amount.
• Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
• Loans can be used for a broad range of business purposes, including to support investment. Loans may be used to refinance any pre-existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
• Borrowers can access up to $5 million in total, in addition to the Phase 1 and Phase 2 loan limits.
• Loans are for terms of up to 10 years, with an optional repayment holiday period.
• Loans can be either unsecured or secured (excluding residential property).
• The interest rate on loans will be determined by lenders, but will be capped at around 7.5 per cent, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.

Loans issued under the Scheme can be used to refinance existing loans or for a broad range of businesses purposes (including to support investment) but cannot be used to:

• purchase residential property;
• purchase financial products;
• lend to an associated entity; or
• lease, rent, hire or hire purchase existing assets that are more than half way into their effective life