SME Recovery Loan Scheme expanded to help beat lockdown slump
In a bid to help small businesses struggling to keep afloat amid ongoing lockdowns and border closures, the federal government has announced it will be expanding the eligibility criteria of the SME Recovery Loan Scheme.
Under the scheme, small businesses impacted by COVID-19 can access low-rate loans of up to $5 million through participating lenders, on the condition that their annual turnover does not exceed $250 million.
Initially only available to flood-affected businesses and those which received the JobKeeper wage subsidy in the March quarter of 2021, the scheme has been amended to remove these requirements.
NAB executive, Andrew Irvine said making the scheme more widely available will go a long way towards restoring business confidence.
“The SME Recovery Loans are a good option for businesses who need additional capital at this time and expanding the eligibility criteria is a positive step.”
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Westpac chief Peter King also welcomed the expansion, urging struggling business owners to contact their bank or lender to determine their eligibility for the scheme or discuss other solutions.
“We know many small businesses are doing it tough and this important initiative provides further assistance directly to small businesses,” he said.
“We encourage any business customers worried about their finances to give us a call so we can work through what help may be available for them.”
Along with access to low-rate finance, the big banks have rolled out a number of measures to assist Australian businesses. These include deferrals on loan repayments, debt restructuring options, and waived costs for early withdrawals on term deposits.
Many banks also provide case management support for small business customers experiencing financial difficulty.
The full list of lenders participating in the SME Recovery Loan Scheme can be found on the Treasury website. For financing options, browse our business loans comparison page, where you’ll be able to weigh up offers from bank and non-bank lenders.
Business loan comparisons on Mozo - rates updated daily
Unsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
Interest Rate
Upfront Fee
Funding speed
from 9%-Within same dayUnsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
- Interest Rate
- from 9%
- Upfront Fee
- -
- Ongoing Fees
- 2.5% establishment fee of the disbursed amount.
- Late payment fee
- $50.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $300,000
- Minimum loan term
- 3 months
- Maximum loan term
- 4 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $60,000
- Application speed
- within 24 hours
- Approval speed
- 2 hours
- Funding speed
- Within same day
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- Early payout options and early repayment discounts are available. Principal-only payout available after 6 months.
- Other restrictions
- Loans above $300,000 must be secured by property.
Invoice Finance
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
Interest Rate
Upfront Fee
Funding speed
0% for the first 60 days, then rates starting from 6%On ApplicationInstant on approvalInvoice Finance
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
- Interest Rate
- 0% for the first 60 days, then rates starting from 6%
- Upfront Fee
- On Application
- Ongoing Fees
- Ongoing service fees apply. Amount is calculated as a percentage of invoices processed.
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $100,000
- Maximum loan amount
- $10,000,000
- Minimum loan term
- 1 months
- Maximum loan term
- -
- Repayment frequency
- -
- Repayment types
- n/a
- Minimum trading period
- 1 year
- Minimum annual turnover
- $1,000,000
- Application speed
- 2 Minutes
- Approval speed
- 24 Hours
- Funding speed
- Instant on approval
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- Complimentary Trade Finance facility available subject to approval. Access to the Octet Supply Chain Platform.
- Other restrictions
- Up to 85% value of unpaid invoices available.
Prospa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Interest Rate
Upfront Fee
Funding speed
Interest rates vary based on risk.3.5%from 24 hoursProspa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
- Interest Rate
- Interest rates vary based on risk.
- Upfront Fee
- 3.5%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $150,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 3 years
- Minimum annual turnover
- $1,000,000
- Application speed
- 10 Minutes
- Approval speed
- Same-day approval
- Funding speed
- from 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Boost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
Interest Rate
Upfront Fee
Funding speed
from 14.00% p.a.Details on applicationFrom 24 hoursBoost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
- Interest Rate
- from 14.00% p.a.
- Upfront Fee
- Details on application
- Ongoing Fees
- $0
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured or Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- -
- Minimum trading period
- 1 year
- Minimum annual turnover
- $120,000
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
- Funding speed
- From 24 hours
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- All industries supported.
- Other restrictions
- Loans up to $100K: No upfront collateral required Loans between $100K to $200K: Borrower must be a property owner Loans over $200K: Borrower must be a property owner, and the loan will be secured
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