The Australian Banking Association says banks will defer loan repayments for up to three months for small businesses affected by lockdowns throughout Australia. "This will help many struggling small businesses stay afloat in these challenging times." says the Small Business Ombudsman.
“While we know that the Australian economy is in good shape, we also know that recent lockdowns have taken their toll on customers and the recovery can be slow,” said Australian Banking Association CEO Anna Bligh. “Customers can rest assured that if they need help, they will get it. Your bank will help you find a way through, don’t tough it out on your own.”
The national support package will be available to all small businesses and home loan customers significantly impacted by current lockdowns or recovery from recent lockdowns, irrespective of geography or industry.
On application, support includes:
Business banking repayment deferrals
- Up to 3 month repayment deferrals, with loan terms extended accordingly
- Offered to all small business customers (business lending less than $3m and a turnover of less than $5m), which includes up to 98% of small businesses
- Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)
Everyday banking support
- Refunds of merchant terminal fees for up to 3 months
- Waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for up to 3 months
Home loan support
- Range of support measures, including deferrals on a month by month basis
- Available to both individual and business customers
The package was welcomed by Australian Small Business and Family Enterprise Ombudsman Bruce Billson: “This is a positive initiative that will help many struggling small businesses stay afloat in these challenging times. I would encourage all small businesses owners who are experiencing financial difficulties to call their banks now to make the necessary arrangements.”
