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How to benefit from the new SME Recovery Loan Scheme

Posted by: Danielle Moore at February 01, 2022

There is some good news for businesses still grappling with the financial impact of COVID-19 lockdowns in New South Wales and Victoria. Late last year the federal government announced an extension to the SME Recovery Loan Scheme through to the end of June this year.

This revamped lending initiative is aimed at SMEs with a turnover of up to $250 million, including self-employed and not-for-profits. It builds on earlier loan schemes introduced during the pandemic, which were due to expire at the end of December 2021.

Who can benefit from the scheme

According to, the SME Recovery Loan Scheme enables small and medium-sized businesses to access funding to get through the impact of the coronavirus, recover, and invest for the future. The government will work with lenders to help them provide cheaper credit and ensure that eligible businesses have access to finance to maintain and grow their business.

The original scheme was aimed at businesses that received the JobKeeper payment for the March 2021 quarter and was extended the include those hit hard by the March 2021 floods. The new proposal helps businesses economically affected by COVID-19 from 1 October last year.

What the scheme offers

It provides access to 50% government-backed loans of up to $5 million from participating lenders. Repayments can begin up to 24 months after the loan was issued, with interest capped at 7.5% per annum. Finance is supported by outstanding invoices, not real estate security.

Lenders determine the actual rates, based on factors like the loan term and if repayment holidays apply.

Types of loans offered

Note: Credit, debit, charge, or business card facilities are excluded.

Eligibility criteria

Note: You will need to sign a SME Eligibility Declaration. ​​​​​ 

How Rebus can help

This scheme is unique and much more flexible than a regular business loan. It can be used for many different business purposes, like covering daily overheads, refinancing debt, buying non-residential property, acquiring another business, or supporting investment.

Lenders are now more willing to support businesses affected by COVID-19 due to the extension of this government backing. Talk to us about how to benefit from this very favourable scheme. We can advise you and make sure you’re set up correctly to take advantage of this unique financing offer.

Danielle Moore

The Trustee for the Rebus Capital Partners Unit Trust ABN 88 452 904 420. Authorised Credit Representative 523233 under Australian Credit Licence 536100.