As the Coronavirus pandemic continues to pose new challenges, the government’s financial assistance continues to expand.
One of the government’s economic responses is the SME Recovery Loan Scheme (the Scheme) which was intended to aid in the recovery of the economy and provide ongoing assistance to SMEs dealing with the economic consequences of the coronavirus outbreak.
Under the scheme, eligible businesses can get loans from participating bank and nonbank lenders with the backing of a government loan guarantee.
The Government announced that the SME Recovery Loan Scheme will be extended for another six months (until 30 June 2022) to help SMEs impacted by COVID-19.
Eligibility
The Scheme is available to small and medium-sized businesses as well as self-employed individuals and non-profit organisations:
- with an annual turnover of less than $250 million; and
- was adversely economically affected by COVID-19
Key Features
The Scheme also has the following major features:
- Borrowers can receive a repayment holiday of up to 24 months from their lender
- Loans can be used for a variety of company needs, including investments
- Loans can be used to refinance any pre-existing debt
- Unsecured and secured loans are both available (excluding residential property).
Notably, the Government will reduce its loan guarantee from 80% to 50% under the Scheme’s 2022 extension available from 1 January 2022 to 30 June 2022.
If you are experiencing financial difficulty due to COVID-19, the SME Recovery Loan Scheme may be a potential solution. If you’d like to learn more about this Scheme, please contact us or a participating lender.
This page contains information that is of a general nature. It does not take into account your specific requirements or circumstances. Before making any financial decisions, you should consider your individual financial situation, objectives, and requirements, and seek financial advice.