SME Guarantee Scheme
Last updated 27th March 2020
The Federal Government is providing a 50% Guarantee to SME Lenders for new unsecured loans to be used for working capital. Loans will be up to $250,000 per borrower, with a maximum 3-year term and will have an initial 6-month repayment holiday.
What is available
The Federal Government will provide eligible lenders with a guarantee for loans with the following terms:
- Maximum total size of loans $250,000 per borrower
- The loans will be up to 3 years, with an initial 6-month repayment holiday
- The loans will be in the form of unsecured finance
Loans will be subject to lenders’ credit assessment processes with the expectation that lenders will take into account the uncertainty of the current economic conditions.
The scheme commenced in early April 2020 and is available until 30th September 2020.
Eligibility Criteria
Eligible businesses include small and medium businesses with less than $50 million turnover. This includes self-employed individuals and not-for-profits.
To meet the turnover requirement, the business’s annual turnover must have been less than $50 million in the previous financial year and be likely to be less than $50 million in the current financial year.
How to apply
If you are interested in the COVID-19 SME Guarantee Scheme you should approach your financial institution for more information.
Please find the list of participating lenders from the Treasury website.
Applications can be found via participating lenders websites.
