01 Apr Government Backed Business Loans
Last week, the RBA announced a $90 billion term funding facility for banks, with the directive that banks should use it to lend to SMEs (Small Medium Enterprises).
The amount banks are eligible to borrow will depend on how much they lend out to businesses. For every $1 they lend to small business customers, they will be eligible for an additional $5 in funding themselves.
WHAT IS IT?
Unsecured business loans of up to $250,000 (lending criteria applies) with no lender establishment or account fees, and no repayments required for six months.
For the first 6 months, interest will be deferred and capitalised at a reduced variable rate. At the end of the 6 months, principal and interest payments are to be made. Loans terms will be up to three years.
WHO IS IT FOR?
Businesses with less than $50 million annual turnover.
WHO IS DOING THE LOANS?
Currently Major Banks including, ANZ, NAB, WESTPAC and CBA. New non-bank lenders are set to be announced in the coming weeks.
HOW CAN I GET IT?
Contact us to register your interest by emailing us at firstname.lastname@example.org, or go directly to the lenders website by clicking on their logo below:
For more information please go to the Government’s fact sheet on supporting the flow of credit to small business by clicking here