The federal government has expanded eligibility for the SME Recovery Loan Scheme, making it easier for small and medium-sized businesses to get funding. In response to the lockdowns that have affected several states over the past few months, businesses no longer need to have received JobKeeper in the March 2021 quarter or been flood-affected to qualify for the scheme. Under the SME Recovery Loan Scheme, businesses that have a turnover of less than $250 million and that are dealing with the economic impacts of covid can access loans of up to $5 million over a term of up to 10 years. Other features include:
The government will guarantee 80% of the loan amount
Lenders can offer repayment holidays of up to 24 months
Loans can be either unsecured or secured (excluding residential property)
Loans can be used for a wide range of purposes, including investment and refinancing
The loans will be available through participating lenders until 31 December 2021. Want a business loan? Get in touch
More people have been starting businesses since the onset of covid, according to data from the Australian Bureau of Statistics. Why? Perhaps because some of the new entrepreneurs lost their jobs during the pandemic, while others took stock and decided to make a lifestyle change. In the 2020-21 financial year, there were:
365,480 business entries – up 8.6% on the previous year
277,674 business exits – down 4.6% on the previous year
That left a total of 2,402,254 businesses at the end of the financial year – 3.8% more than the year before.
Predictably, many of those new businesses were small operations – the number of businesses with 1-4 employees rose 15.2% during the year. At the same time, many existing businesses made the jump from small to medium – the number of businesses with 20-199 employees jumped 20.6%. Want to expand? Call us for a loan
Business owners and property investors have been showing less interest in commercial property of late, perhaps in response to widespread lockdowns. National buyer search activity fell 4% between July and August, according to realcommercial.com.au. The biggest falls were recorded in the ACT (down 17%), New South Wales (down 8%) and Victoria (down 7%), which all suffered lockdowns. The other states and territories also recorded falls in buyer search activity – except South Australia, which posted a 2% rise.
There was an even bigger fall in leasing search activity, which fell 10% over the month. Again, the biggest falls were in the ACT (down 28%), New South Wales (down 16%) and Victoria (down 12%). With buyer competition falling, anyone who’s in the market for a commercial asset might be able to snap up a property at a great price
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