The Coronavirus SME Guarantee Scheme has now been extended to 30 June 2021, to support a larger number of small and medium-sized businesses adapt and innovate during the coronavirus crisis.
With only 15,600 businesses getting their hands on loans worth a combined $1.5 billion, compared to the scheme’s planned value of $40 billion the Treasurer has announced a post-September tailoring of the scheme to serve more businesses.
"To attract more SMEs to the scheme and help them move out of hibernation and adapt to the new COVID-safe economy. The extended terms of the scheme will enable lenders to continue supporting Australian small businesses when they need it most,” Mr Frydenberg said.
The expanded scheme will shift from providing access to working capital to helping businesses stay afloat during the crisis to now also enabling them to access more affordable and longer-term credit so that they can invest for their future.
The initial phase of the scheme remains available for new loans issued by eligible lenders until 30 September 2020, with the second phase of the scheme to kick off on 1 October 2020 and run until 30 June 2021.