Post-JobKeeper Stimulus Package

Posted 11 Mar

Post-JobKeeper Stimulus Package.

The Morrison Government has just announced a post-JobKeeper stimulus package to rollout on 1 April 2021. The federal government will roll out the $1.2 billion stimulus package across the travel and tourism industries, along with an extension to its SME Loan Guarantee Scheme once JobKeeper expires at the end of the month.

We have read the terms of the SME loan scheme and it is honestly disappointing. This is a loan and not a subsidy. The capped rate at 7.5% is also high. For businesses, particularly in Tourism, already suffering the affects of Covid-19 restrictions on travel, this is not a lifeline, and more like a rope & noose for already stressed business owners.


Tourism Support

The support package will subsidise 50 per cent of 800,000 domestic flights to select tourism destinations across Australia. The discounts will be based on average air fares, subject to final discussions with airlines, and will commence from 1 April.

Destinations included in the scheme include the Gold Coast, Cairns, the Whitsundays, Alice Springs, Broome, Kangaroo Island and Merimbula.

Expanded SME loan scheme

As part of its targeted support announcement, the Morrison government also announced an extension to, and expansion of, its SME Loan Guarantee Scheme. The loans will be available from 1 April and remain open until 31 December.

Eligible Businesses

The scheme is only open to recipients of the JobKeeper payment between 4 January 2021 and 28 March 2021, specifically small and medium sized businesses with up to $250 million turnover. Both self‑employed individuals and non-profit businesses are eligible. Businesses that have accessed loans in Phase 1 and Phase 2 can also apply for loans under the scheme.

Key Features

Participating lenders are offering guaranteed loans on the following terms under Phase 2:

  • The Government guarantee will be 80% of the loan amount.
    • Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
    • Loans can be used for a broad range of business purposes, including to support investment. Loans may be used to refinance any pre-existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
    • Borrowers can access up to $5 million in total, in addition to the Phase 1 and Phase 2 loan limits.
    • Loans are for terms of up to 10 years, with an optional repayment holiday period.
    • Loans can be either unsecured or secured (excluding residential property).
    • The interest rate on loans will be determined by lenders, but will be capped at around 7.5 per cent, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.

To read more about the SME Loan Scheme including the Loan Uses and How to Appy, click here. (Note: You apply through the banks existing lending channels).

Should you have any questions about the SME Loan Scheme please do not hesitate to contact us on Cairns 07 4041 6188 or Sunshine Coast 07 5391 4747. 

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