Extended support for small businesses on the Sunshine Coast

The Morrison Government is continuing to back Australia’s small business-led recovery from the COVID-19 pandemic on the Sunshine Coast by extending the SME Recovery Loan Scheme by a further six months to 30 June 2022. Up to 22,900 businesses in the Sunshine Coast Federal electorate of Fisher alone could be eligible to apply for a loan.

Federal Member for Fisher Andrew Wallace said that the extension of the scheme continues the Morrison Government’s unprecedented support for SMEs and will help even more

businesses get access to the funding they need to bounce back from the impacts of the pandemic.

“Since the COVID-19 pandemic struck in 2020, the Morrison Government has stepped up time and again to support small businesses and the tens of thousands of workers they employ here on the Coast.” Mr Wallace said.

“The Morrison Government’s JobKeeper payment supported 8,700 businesses and 26,700 employees in Fisher to help them through the pandemic and keep them connected to their place of work, setting the groundwork for our recovery. Our tax-free Cashflow boost has helped around 5,700 small and medium businesses providing $235 million in payments to help businesses in Fisher to stay afloat. That is not to mention the 7,100 businesses in Fisher who have been eligible to use the Morrison Government’s extended loss carry back measure to support cash flow and confidence.” he said.

Around 80,000 loans worth approximately $7.3 billion have been written to date since the SME Recovery Loan scheme commenced in March 2020.

“As state borders open and we begin to look forward to our region’s recovery from the health and economic consequences of the COVID-19 pandemic, the Morrison Government’s extension of the SME Recovery Loan Scheme is going to provide another option for thousands of Sunshine Coast small enterprises, ensuring that they can innovate and adapt to maintain and grow their businesses.” Mr Wallace said.

As with the existing scheme, SMEs who are dealing with the economic impacts of COVID-19 with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years. With the economy showing signs of a strong rebound as restrictions ease, the Government will reduce its loan guarantee from 80 per cent to 50 per cent, helping drive a private sector-led recovery.

Other key features of the SME Recovery Loan Scheme include:

  • Lenders can offer borrowers a repayment holiday of up to 24 months.
  • Loans can be used for a broad range of business purposes, including to support investment.
  • Loans may be used to refinance any pre-existing debt of an eligible borrower.
  • Loans can be either unsecured or secured (excluding residential property).

This complements the Morrison Government’s record investment incentives which allow for the full and immediate expensing of the cost of eligible assets for small businesses.

“The Morrison Government’s SME Recovery Loan Scheme is another important part of supporting our region’s economic recovery from COVID-19, but ultimately it is all of us Sunshine Coast locals who can make the biggest difference. This summer please, support the Sunshine Coast, get out there and shop local, play local and stay local to help build our region’s recovery.” Mr Wallace said.

Further information can be found at https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme.