Westpac is pleased to acknowledge the Federal Government announcement today that it has finalised the Coronavirus SME Guarantee Scheme.
Westpac was among the first major banks to confirm its support of this scheme which will see the government provide a guarantee to cover 50 per cent of any losses for eligible new loans issued to COVID-19 impacted small and medium size businesses.
Under the scheme, unsecured loans with a 3-year term up to $250,000 will be offered to eligible business customers with a turnover of less than $50 million. This offer includes an initial 6-month principal and interest payment deferral period with interest to be capitalised at the end of the 6-month period.
Guil Lima, Chief Executive, Business Division, said: “These are extraordinary and distressing times and we must all work together to do what we can to best fortify Australian businesses and the Australian economy.”
“Westpac was the first major Australian bank to offer support for businesses impacted by COVID-19. We did this in early February, and we’ve stayed at the forefront and will keep helping our customers any way we can.”
“We all have a role to play in this extraordinary and challenging time. Westpac is strong and we are determined to help our customers in any way we can.”
Westpac’s support package for business includes:
- Unsecured SME Guarantee Scheme loans up to $250,000 for new and existing business customers with turnover of less than $50 million
- Repayment relief to defer principal and interest repayments of eligible business loans for 6 months (with interest to be capitalised) for businesses with a total lending exposure up to $10 million
- Zero establishment fee for standard equipment finance loans until the end of June 2020
- We are refunding the merchant terminal rental fee for up to 3 months
- Fee free redraws where permitted under the loan and subject to approval
- Restructuring and consolidating loans
- Access to term deposit funds without reduction in the interest rate
- Deferred payments for Business Credit Cards for 3 months.
