CBA welcomes the Federal Government's announcement to extend the SME Recovery Loan Scheme to 30 June 2022 and encourages Australian small businesses to take advantage of the support measures available through the bank and government initiatives.
CBA Group Executive Business Banking, Mike Vacy-Lyle, said the scheme has been an important measure for Australian small businesses and is playing a pivotal role in the country's economic recovery.
"We are very supportive of the extension of the scheme to allow more businesses to take advantage of this low cost funding as we head towards the New Year.
"As the nation reopens, it's fantastic to see recovery across the sector with many small businesses taking advantage of pent up customer demand and investing for future growth. At the same time, we know some businesses have experienced uneven recovery and continue to need additional support to re-stock, re-hire and generally, get back to business.
"We're firmly committed to supporting all small businesses. As Australia's largest bank, we will continue to do what we can to ensure small businesses are supported and set up for success for the future. We encourage businesses to speak to us about how we can help meet their business needs," said Mr Vacy-Lyle.
The extended scheme will offer eligible businesses with an annual turnover of less than $250 million which have been impacted by the pandemic up to $5 million for up to 10 years. It will also see the Government reduce its loan guarantee from 80 per cent to 50 per cent.
More than 24,000 Australian businesses have received more than $2.8 billion in funding support made available through the Commonwealth Bank's Government-backed SME Guarantee Loan Scheme to help them manage the impacts of the pandemic and as the economy reopens to support business resurgence.
Since the SME Recovery Loan Scheme eligibility criteria was expanded on 1 October 2021, CBA has funded more than half of all loans under the Scheme as part of its commitment to leading Australia's economic recovery by backing small business.
"We're continuing to invest in our digital and technology platforms to ensure businesses have fast access to a range of financial support and lending, when they need it most. As part of this, our pioneering lending tool BizExpress, has provided fast and easy access to SME loans," said Mr Vacy Lyle.
CBA recently announced a zero interest business loan for eligible customers, with just one simple fee¹ and a three month repayment holiday to provide extra support in the lead up to Christmas. The two-year unsecured loan is available to eligible existing CBA customers via the bank's innovative and self-service digital lending platform, BizExpress Online. Customers can compete the application online, receive a real-time credit decision and fast access to funds.
CBA's other business support measures have included:
- Repayment deferrals on eligible business loans;
- A refund of merchant terminal fees for up to 90 days for eligible customers;
- A waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for eligible customers;
- Specialised tailored support for larger business customers; and
- CBA loans provided through the Federal Government-backed SME Loan Recovery Scheme.
Businesses (both new to CBA and existing customers) can apply for a SME Recovery Loan for their term debt, working capital and asset finance needs on CBA's website at commbank.com.au/sme-recovery, call their Relationship Executive, or call our 24/7 Australian based business banking contact centre on 13 19 98.
