It is third time lucky for the federal government and for SME manufacturers with the banks finally prepared to lend cash to Covid-affected SMEs that need it.
SMERL3 is the government’s third go at designing an SME recovery loan scheme which the banks would get onboard with, as distinct from their usual ‘bugger off’ attitude to SME manufacturers and SMEs in general.
The first iteration by Treasurer Josh Frydenberg of his SMERL loans bombed with the banks lending only an average of $35,000 to eligible SMEs – a drop in the ocean to companies trying to recover from the trials of the pandemic.
Upping the government guarantee for SMERL2 to 50 per cent of the risk again failed to budge the banks who still largely refused to lend to SMEs.
All credit to the government it has persevered and now, under SMERL 3 is guaranteeing the banks 80 per cent of their risk – and @AuManufacturing’s value-added services partners can help you access these SMERL3 loans.
SMERL3 allows for SME’s to borrow any amount 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.
If you wish to contact our value-added services partners please contact editor, Peter Roberts directly on 0419 140679 or [email protected]
More information on our value-added services partners can be found here.
Picture: Josh Frydenberg and Scott Morrison
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