STIMULUS: Government loan guarantee scheme

The Australian government will make available loan guarantees for some small and medium-sized enterprises (SMEs) as part of its effort to combat the fallout from the coronavirus pandemic.

The scheme is available for printers and all SMEs, including sole traders, with a turnover of up to $50m, for loans totalling up to $250,000 per borrower.

These loans can be up to three years, with an initial six-month repayment holiday, and the borrowers will not have to provide an asset as security for the loan.

A huge amount of print production equipment comes in at less than $250,000, including many digital colour printers and wide format print systems, as well as most finishing equipment.

The Coronavirus SME Guarantee Scheme will be available for new loans made by participating lenders through to September.

The government said businesses interested in the Coronavirus SME Guarantee Scheme should contact their financial institution for more information. The scheme will officially commence in April, but funds may be accessed earlier, depending on your lender.

For more information, see the Treasury website.