- July 24, 2020
- Posted by: Canberra Innovation Network
- Category: COVID-19
Small and medium sized businesses (SMEs) are being supported by the Federal Government to get access to the funding they need in order to adapt and innovate during the coronavirus crisis.
The Coronavirus SME Guarantee Scheme has been extended to help businesses move out of hibernation, successfully adapt to the new COVID-safe economy and invest for the future.
Under the Scheme, the Government is guaranteeing 50% of new loans issued by eligible lenders to SMEs.
The Scheme has enhanced lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus. It’s already seen more than 15,600 businesses accept loans worth $1.5 billion.
“This scheme can lower the amount of assets needed to secure a loan which will hopefully help some innovative businesses to get loans. Debt can be an important part of the funding mix for some entrepreneurs, especially where the business has concrete assets.” Said Dr Craig Davis, General Manager of Growth Programs and at the Canberra Innovation Network.
With the extension comes some key changes in the scheme such as the maximum loan size increasing from $2500,000 to $1 million and loan terms from three years to five.
The extended terms of the Scheme will enable lenders to continue supporting Australian small businesses when they need it most.
The Scheme is currently available for new loans made by participating lenders until 30 September 2020, with a second phase from 1 October 2020 until 30 June 2021.
Find out more at treasury.gov.au.
There are many pathways to funding for startups and entrepreneurs, including innovative lenders that do not require hard security like banks do.
Epicorp works closely with the region’s innovation and business support networks to provide companies with short term growth capital through lending facilities and venture debt.
Check out our funding page for additional opportunities through the Canberra Innovation Network.