COVID Small & Medium Enterprise (SME) Recovery Loan Scheme

What is it?

Also known as ‘The SME Recovery Loan Scheme”, it enhances lenders’ ability to provide cheaper credit, allowing many SMEs to access additional funding or refinance existing loans at a lower interest rate. This funding will sustain SMEs through the pandemic and enable them to recover and invest for the future. In simple terms, Businesses can access cheaper loans because the lenders don’t have to be ‘as strict’ with their requirements.

Key Features

  • The Government guarantee will be 50% of the loan amount.
  • Loans can be used for a broad range of business purposes
  • Borrowers can access up to $5 million in total
  • Loans are for terms of up to 10 years, with an optional repayment holiday period of up to 24 months.
  • Loans can be either unsecured or secured (excluding residential property).
  • The interest rate on loans will be determined by lenders, but will be capped at around 7.5 per cent, with some flexibility for interest rates on variable rate loans.
  • Usually Principal & Interest Repayments

These loans are set to discontinue from 30th June 2022.

We have been able to achieve some great results for existing Gild Clients & it is a great way to access additional working capital for COVID effected businesses.

We can help!

If your business has been affected by COVID & you are thinking about accessing additional liquidity/working capital to help your growth, please reach out!