Banks offer business loan repayment relief to small businesses as part of new package

The Australian Banking Association (ABA) has today announced a new relief package targeting Australian small businesses impacted by COVID-19. 

According to ABA CEO, Anna Bligh, the package, which is still subject to authorisation by the ACCC, will apply to over $100 billion worth of existing business loans and could put up to $8 billion back into the hands of small businesses.

“This is a multi billion dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs,” Bligh said.

“Small businesses are the most vulnerable part of the economy and have the most urgent need for assistance. They employ 5 million Australians and this package is designed to help them keep doing just that.” 

So what types of assistance will be available to small businesses as part of the package? Some of the measures already outlined include:

  • - Businesses will be able to defer principal and interest repayments on their business loans for six months

  • - Fees will be waived for business loan restructuring or consolidation, as will a number of other fees and charges

  • - Interest rate reductions will be waived for businesses who need to withdraw cash from a term deposit before its maturity date

According to Bligh, banks have already begun the process of contacting their small business customers about the relief package, but she also urged customers yet to be contacted to reach out to their banks. 

RELATED: Big bank emergency support: How have CommBank, NAB, ANZ and Westpac responded to this month's cut?

Today’s announcement comes on top of the $17.6 billion stimulus package unveiled by the Federal Government earlier in the week.   

The stimulus package, which is forecasted to assist around 700,000 small and medium-sized businesses around Australia, contained a number of measures targeting SME’s including wage assistance, tax free payments and an expansion of the instant asset write-off scheme.

The Federal Government is also expected to announce a second, larger stimulus package in the coming days, though the exact measures involved are currently unknown. 

Until then, check out our wrap up on what the coronavirus stimulus package will mean for Aussie small businesses, or check out our business banking hub for all the latest news, guides and information.

Compare business loans - rates updated daily

Search promoted business loans below or do a full Mozo database search. Advertiser disclosure.

Refine the list of business loans

Let’s help find you a great business loan...
  • Featured Product
    Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

    Interest Rate
    Upfront Fee
    Funding speed
    On application
    Details on application
    From 24 hours
    Details
  • Business+ Unsecured Loan

    A simple way to fund your business’s big plans. Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with the Business app. Enjoy a fast approval process. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 11.95% p.a. to 22.95% p.a.
    $495
    Varies
    Details
  • Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Details
  • 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 day
    Details
  • Business+ Unsecured Overdraft

    Manage the cash flow in your business with ease. Access up to $50,000 without using your assets as security. Lending criteria apply. Access your available limit from your linked Business+ Account. Use your Debit Mastercard for added convenience. Interest is charged on your balance owing, not your limit. Easy online application. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 14.95% p.a. to 25.95% p.a.
    $495
    Varies
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.