SME Recovery Loan Scheme
The new SME Recovery Loan Scheme began as of 1st April 2021 and will continue through to 31st December 2021. The government is aiming to support more businesses affected by the pandemic and boost the economy.
The loans are up to $5 million in total and can be either secured or unsecured, and for a repayment period of up to 10 years. Lenders are also able to offer a repayment holiday period of up to 24 months. The interest rate offered is determined by each lender and will generally be capped at 7.5%.
The Government is providing the banks with guarantee 80% of the loan. The banks will still assess the credit worthiness of applicants.
If eligible, your business can use the loan for a number of purposes including:
- To refinance existing debt.
- Purchase residential or commercial property.
- Lend to another associated entity of the business.
- Invest in assets, technology, or equipment.
For more information