Government extends relief for flood-affected businesses

The Australian Government will extend the SME Recovery Loan Scheme in order to provide further support to flood-affected businesses.

The SME Recovery Loan Scheme was designed to help businesses that were on JobKeeper during the March quarter by providing them with easier and more cost-effective access to finance, greater repayment flexibility, the ability to refinance existing loans into the Scheme and to better manage their cash-flows through an extended loan term and lower combined repayments.

From 1 April, businesses impacted by COVID-19 and the floods will also be eligible to access the SME Recovery Loan Scheme. These flood-affected businesses will not be required to have been on JobKeeper during the March quarter to be eligible.

Expansion of the Scheme will allow eligible flood-affected businesses with a turnover of less than $250 million to be able to access loans of up to $5 million over a term of up to 10 years and to also be offered up to 24 month repayment holidays.

Prime Minister Scott Morrison said businesses will be able to rebuild quickly.

“We want businesses and producers affected by floods to get back on their feet. Know that the Federal Government is backing you,” the Prime Minister said.

“This loan extension will allow businesses to have the security of capital to develop a tailored recovery plan that works for them.”

“The Federal Government is committed to ensuring small businesses get the support they need in the face of these devastating floods,” Treasurer Josh Frydenberg said.

“The extension of this scheme will help businesses in the flood-affected areas get back on their feet.”

The Minister for Agriculture, Drought and Emergency Management said the extension of the recovery loan scheme will be good news for businesses in rural and regional Australia.

“Businesses in the bush were already hit by COVID and the associated restrictions,” Minister Littleproud said.

“The floods might slow their recovery but not their determination.

“We will stand shoulder to shoulder with them.”

The SME Recovery Loan Scheme is part of the Morrison Government’s commitment to supporting Australia’s economic recovery from COVID-19 and these devastating floods.