2022 SME Recovery Loan Scheme
The 2022 SME Recovery Loan Scheme is designed to allow small and medium business (SME’s – businesses with annual revenue of less than $250 million) who are dealing with the economic impacts of the coronavirus pandemic to access loans of up to $5 million. Self‑employed individuals and non-profit businesses are also eligible.
The SME Recovery Loan Scheme has now been extended to 30 June 2022.
Under the 2022 SME Recovery Loan Scheme, for loans from 1 January to 30 June 2022:
- the Federal Gov’t will guarantee will be 50% of the loan amount.
- You can have a repayment holiday of up to 24 months (interest will still accrue).
- Loans of up to $5m can be used for a broad range of business purposes, including investment support and to pay out existing debts. Note loan can’t be credit or charge card based.
- Loans can’t be used to buy residential property but commercial property is ok. Also I personally helped a business owner get a commercial property loan under the 2021 Scheme at nearly 100% loan to value ratio.
- Loan term can be up to 10 years and be unsecured.
- Interest rate is capped at around 7.5% (can be lower and I have seen in the 2021 scheme rates under 4%).
If you were impacted by the pandemic, and you could use some cash to help your business, approach your bank now. If you are not sure who to speak to at your bank, simply search for “SME Recovery Loan Scheme” and your banks name. That should give you appropriate contact details for your bank.
Note whilst the 2021 scheme ended on 31 December 2021, most banks stopped taking applications in late November 2021. So even though the scheme is open till 30 June 2022, don’t expect to apply on 29 June 2022 and be successful.
If you want more information click here
If you want some help with this SME Recovery Loan Scheme, contact me below.
Contact Wayne Wanders for your FREE Business Survival Session
At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.
Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.
Wayne Wanders, A Real CFO
wayne@aRealCFO.com.au