Here's what you need to know about the recent government update that was made yesterday.
There has been a major announcement in regard to two schemes to take the pressure off mortgage holders and to assist SME’s obtain finance.
Mortgage Holiday Scheme
The Government & Banks have agreed to provide a six-month mortgage repayment holiday for mortgage holders and SME customers whose incomes have been affected by Covid-19.
Business Finance Guarantee Scheme
This scheme will provide short term credit to assist solvent SME’s that are affected by Covid-19. The Government has agreed to underwrite 80% of individual Bank loans to eligible SME’s, with the Banks taking the risk on the remaining 20%. This scheme sees the Government take a large portion of risk from the Banks to encourage them to keep lending.
The scheme will include a limit of $500,000 per loan and will apply to firms with turnover between $250,000 - $80 million per annum. The loans will be for a maximum of 3 years.
The specifics of the scheme are being finalised and Banks will make an announcement over the coming days.
As always, we will continue to keep you updated.