In light of the economic impact from COVID-19, the Government will provide a guarantee of 50 per cent to Small and Medium Enterprise (SME) lenders to support short-term unsecured loans to SMEs. This measure will assist otherwise viable businesses to meet short-term cashflow issues.
The Government will encourage lenders to provide the loans akin to a line of credit, where the SME will only incur interest in the amount they draw down. The scheme will commence early April 2020, and the last day for lenders to provide new loans will be until 30 September 2020.
Source: Media release by Josh Frydenberg MP