@AuManufacturing’s new value-added service – accessing SMERL3 Covid recovery loans

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The Australian Manufacturing Forum and @AuManufacturing have launched a new value-added service for manufacturers, assisting companies access loans guaranteed by the federal government under its SMERL3, SME Covid-19 recovery scheme.

The federal government in conjunction with banking and lending institutions have been providing government backed loans of between 50 per cent and 80 per cent of the amount drawn.

In August Treasurer Josh Frydenberg amended SMERL3 to include any entity that was Covid affected, in any way – it is up to the entity to declare the way Covid-19 affected them.

With the government now guaranteeing 80 per cent of the banks’ exposure, the banks have loosened up the purse strings and open to manufacturers up until 31st December, 2021.

@AuManufacturing’s value-added partners can help you access SMERL3.

SMERL3 allows for SME’s to borrow up to $5 million over a period of up to 10 years for any worthwhile purpose within the business such as:

1. Refinance existing Debt
2. Repay ATO Debt
3. Repay directors loans
4. Acquire assets (P&E or commercial property)
5. Working Capital.

It cannot be used to on lend monies within the Corporate Structure and it cannot be used for the Purchase of Residential Property.

The loan must be approved by 31st December 2021.

More information can be found here.

Picture: Josh Frydenberg

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