Commonwealth Bank (CBA) has today announced the details of the loans it will offer from 1 April 2021 under the Federal Government’s SME Recovery Loan Scheme.
Eligible businesses can now apply to CBA for loans up to $5 million with variable interest rates from as low as 2.6% p.a. for secured loans, and from 2.85% p.a. for secured loans with a repayment holiday from 12 months. Unsecured loans are available with rates from 3.25% p.a., and from 3.75% p.a. with a repayment holiday from 12 months.
These new rates are as much as 75 basis points lower than loans offered by CBA through the Federal Government’s Coronavirus SME Loan Guarantee Scheme implemented in 2020.
The new scheme is an extension of the SME Loan Guarantee Scheme and is available to businesses that were eligible to receive JobKeeper in the past three months, have a turnover of less than $250 million, or businesses impacted by the recent floods in Queensland and New South Wales.
CBA’s Group Executive of Business Banking, Mike Vacy-Lyle said: “We’re committed to continuing to play a leadership role in Australia’s economic recovery. This scheme means businesses have the support they need to get back on their feet. As demonstrated in the previous rounds of Government support, CBA plans to play a leading role in mobilising much needed funding.
“These lower-cost loans will help businesses to invest in assets like equipment and machinery, and will also support longer term investments that underpin growth and jobs. Businesses will be able to use the scheme to refinance existing loans.”
Over the past fortnight, CBA has contacted 85,000 of its business customers who were receiving JobKeeper, checking in to understand how they are faring and whether they are in need of assistance. This follows similar customer check-ins last year, when CBA provided repayment deferrals on 83,000 business loans and proactively engaged all of these customers in advance of the deferral conclusion to understand the impacts of the pandemic on those businesses.
“We’ve stayed very close to our customers to make sure we understand their needs and are available to support them,” Mr Vacy-Lyle said.
Mr Vacy-Lyle said business customers had been resilient through the pandemic and nearly all customers have come off their repayment deferral introduced last year.
Over the weekend, CBA introduced additional on-the-ground support for flood-impacted communities.
“We have approximately 100,000 business customers located in flood-impacted areas that we are working with to support however we can,” Mr Vacy-Lyle said.
“Regardless of individual circumstances, our teams are here and ready to help and I believe that this SME Recovery Loan Scheme will make a real difference for the longer-term success of many Australian businesses.”
Businesses can now apply for a SME Recovery Loan on CBA’s website at commbank.com.au/sme-recovery or call our 24/7 Australian based business banking contact centre on 13 19 98.