In response to the economic impact of the Coronavirus – the federal government has recently announced a new stimulus assistance package called the SME Guarantee scheme to help businesses grow and survive through the pandemic.

The SME Guarantee scheme is designed to provide businesses with much needed access to working capital.

Under this scheme the Government will guarantee 50% of new loans issued by eligible lenders. This scheme will be available until the 30 September 2020.

What is the SME Guarantee Scheme?

The SME Guarantee Scheme is designed to provide small and medium businesses with much needed working capital to reduce the effects felt by the impacts of the COVID-19 pandemic.

The Government will provide eligible lenders with a 50% guaranteed loan with the following terms:

  • SMEs, including sole traders, with a turnover of up to $50 million
  • Maximum total size of loans of $250,000 per borrower
  • Loans will be up to three years, with an initial six month repayment holiday
  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan

By backing these loans to the value of 50%, the government is providing incentive for lenders to help as many businesses as possible access these types of loans. Full details of the scheme can be accessed via the Government Treasury Website.

What does this mean to your business?

This means that if your business has been affected by the COVID-19 pandemic and your revenue has decreased the SME Guarantee scheme can provide you with much needed working capital to ensure your business sees off this downturn.

Increasing your available working capital may assist in meeting your businesses financial commitments such as; creditor payments, accounts payable debts, rent, marketing, stock or positive cashflow to see off any downturn your business may have experienced.

The Government has selected a limited amount of eligible lenders to which these loans will be available through. The government has set out guidelines and conditions to the lenders with the help of amendments of Australian Financial Complaints Authority (AFCA) scheme to limit the matters that AFCA can consider in relation to certain decisions made by lenders under the Coronavirus SME Guarantee Scheme.

How can CarBeagle help?

Not every lender is eligible for the SME Guarantee scheme, that means that not every bank your business may use may offer the assistance.

CarBeagle have commercial finance experts at hand, who have access to multiple lenders that deal with a wide variety of businesses and credit conditions.

Each lender has its own specific lending criteria, lending appetite and loan conditions that may not match the needs of your business. CarBeagle is able to navigate these challenges through years of experience and access to over 30 lenders.

We can help with finance.

For most businesses navigating the finance and bank landscape can be challenging at the best of times. If you need assistance with finance to take advantage of the SME Guarantee Scheme then the team at CarBeagle are ready to help with all your finance requirements. We have access to over 30 different lenders and we are confident that we will find a loan that suits your specific needs / circumstances. We do all the legwork for you to ensure you get the best deal and can take advantage of this great initiative.

Get in contact with the CarBeagle team today on 1300 225 525 for an obligation free chat about your finance needs.