SME Recovery Loan Scheme expanded to help beat lockdown slump

By Niko Iliakis · · 2 min read
Fact Checked
Advertiser disclosure
Small business owner.

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.”

RELATED: Businesses investing in new assets at record pace

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

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...
  • placeholder
    About Great Southern Bank
    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
    Go to site
    Details
  • placeholder
    About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $2,000,000 with high approval rates. Access to funds 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
    Go to site
    Details
  • placeholder
    About Lumi
    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
    Go to site
    Details
  • placeholder
    About Great Southern Bank
    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
    Go to site
    Details
  • placeholder
    About ScotPac
    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 application
    From 24 hours
    Go to site
    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.