More small businesses eligible for loans

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Businesses with sales of less than $ 250 million will be eligible for loans of up to $ 5 million under an expanded federal program.

Treasurer Josh Frydenberg announced Wednesday that small and medium-sized businesses would no longer be required to have received JobKeeper wage subsidies or affected by flooding to access the program.

The government will guarantee up to 80 percent of the loans, which will be available from participating lenders until the end of the year.

Repayment holidays of up to two years will be authorized.

Loans can be used for a wide range of business purposes, including investment support and refinancing of pre-existing debt.

Mr Frydenberg said the program made 70,000 loans worth $ 6 billion.

“We are obviously looking to offer them the best possible interest rate, lower than what they might otherwise have found on the market,” he told the Nine Network.

“It would depend on the different lenders and the deals that can be made.”

The treasurer said small businesses were desperate with the ongoing coronavirus closings putting owners under extreme pressure.

“They are discouraged,” he said.

“A lot of people have their savings at stake through their small businesses and, in many cases, their homes. “


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