SME Guarantee Scheme – helping small & medium business owners get access to working capital

A Coronavirus SME Guarantee Scheme has been introduced, and is designed to support the flow of credit for small and medium sized businesses (SME’s) – with the Government to guarantee 50% of new loans issued by eligible lenders.

The scheme enhances lenders willingness and ability to provide credit – providing timely access to working capital to business impacted by the Coronavirus – and is available for new loans made by participating lenders until 30 September.

The government guarantee is for loans with the following terms:

  • SMEs, including sole traders, with a turnover of up to $50m
  • Maximum loan is $250,000 per borrower
  • Loans up to three years, with an initial six-month repayment holiday
  • Unsecured finance – borrowers won’t have to provide an asset as security for the loan

Lenders are been encouraged by the Government to provide facilities that only have to be drawn if needed, and that interest is only incurred on the amount drawn down – giving flexibility to draw down funds as and when the need arises.

The following are lenders that are currently eligible to participate in the SME Guarantee Scheme:

  • Australian Mutual Bank Limited
  • Bank Australia
  • Bank of Queensland
  • Bank of Us
  • Bendigo and Adelaide Bank
  • Commonwealth Bank
  • Get Capital
  • Heritage Bank
  • Judo Bank
  • Liberty Financial
  • Moula Money
  • NAB
  • On Deck Capital
  • Prospa
  • Queensland Country Bank
  • Regional Australia Bank
  • Summerland Credit Union
  • Suncorp
  • The Capricornian Ltd
  • Unity Bank
  • Westpac