The Small Business Ombudsman has welcomed the extension of the federal SME Recovery Loan Scheme that provides small and family businesses with access to finance as they work to get back on their feet.
Treasurer Josh Frydenberg announced on Monday that the SME Recovery Loan Scheme, which was due to finish at the end of the year, will be now be available until 30 June 2022.
Under the extended scheme, SMEs impacted by the pandemic with a turnover of less than $250 million can access loans of up to $5 million over a term of up to 10 years.
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| "COVID-19 conditions are finally settling": Bruce Billson, ASBFEO |
ASBFEO Bruce Billson says small and family businesses are well-positioned to lead the national economic recovery as pandemic-related trading restrictions ease.
“Small businesses are working hard to get their businesses back up and running after a very challenging couple of years,” Mr Billson says. “The good news is that COVID-19 conditions are finally settling and that is allowing small business owners to get on with what they do best – growing their business.
“The extension of the SME Recovery Loan Scheme will offer much-needed cash flow to small businesses, giving them a fighting chance at returning to full strength. We hear first-hand from small and family businesses that access to finance allows them to invest and innovate.”
Billson called on banks to support the scheme's extension.
“With the Australian Government guaranteeing 50% of loans secured under the scheme, we hope this will increase lender appetite, particularly with a focus on growth and investment lending. We really want to see lenders make loans more accessible to small and family businesses, especially for those with clear growth and innovation plans and for ambitious new-to-bank customers seeking finance. Finance is the oxygen of enterprise and those with growth and investment ambitions need additional support.”
