On 11th December 2021, the Government announced the extension of the SMS Recovery Loan Scheme.

The new Scheme Rules came into effect on 01 January 2022, and have the following effect:

• The SME Recovery Loan Scheme has been extended to 30 June 2022; and
• The Government Guarantee has been reduced to 50% (down from 80%)

This is good news for businesses who still require cheaper finance to get through the difficulties that the pandemic continues to cause.

Be prepared to go through the usual rigorous income and asset tests that the banks conduct. Even though it is partly government-backed, the banks will conduct its usually serviceability and asset testing.

You will need to act quickly, as most banks will take time to process your application. Ensure you have all documents on hand to expediate the process.

More details can be found on the Treasury website: https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme

Author: Anna Rosemarie

Entrepreneur