Some small businesses claim the recently extended SME Recovery Loan Scheme is of no use to them, as lending criteria pushes it out of reach despite the 80% government guarantee.
We understand that not one travel agent has been able to secure such funds and for businesses in the hospitality industry remain extremely unlikely to receive assistance.
As with so many things, the devil is in the detail and while everyone’s intentions to help are genuine, there are a few changes needed including to the eligibility criteria so that the majority of distressed businesses who apply actually qualify.
“Without the right support, explained clearly and accessed easily, we are going to lose not only these important businesses but local employers, community supporters and innovators across the country,” said Hilary O’Dwyer, founder of Titian Consulting.
Treasurer Josh Frydenberg said more than 70,000 loans have gone out worth more than $6 billion. He said in the interview banks will put their own credit checks across the potential borrowers, but said that “because we’re guaranteeing 80%, there’s going to be a greater willingness to enter into these loan agreements with the particular business”.
