Australian Small Businesses Can Now Defer Loan Repayments For Six Months Due To Coronavirus

Australian small businesses have been given a lifeline amid the coronavirus pandemic.

With thousands of people ordered to self-isolate, many Aussie operators have all but shut down during the outbreak of Covid-19 and are growing increasingly worried about how they'll stay afloat.

But the Australian Banking Association CEO Anna Bligh has announced a new measure to allow small enterprises to defer their loan repayments for six months.

"This is a multi-billion dollar shot in the arm for businesses that need it the most," Ms Bligh said.

Kgbo (Creative Commons)

"Businesses are doing it very tough...but rest assured, banks have got your back. This package is for small businesses which today have the most urgent and critical need.

"If they start to see any critical need in other areas like mortgages they know they will have to look at that."

"There are other small businesses that may need access to more working capital, may be able to take on more borrowings to help them and their employees get through it.

"If a small business needs to take on more borrowings, then they should also be talking to their banks. There is money there to lend to those who can take on more debt."

vagawi (Flickr)

When asked what clarifies as a small business, Ms Bligh said the banks will know who their customers are and will be able to help where they can.

Shortly after Ms Bligh's statement, Suncorp Bank announced it would allow those with principal and interest repayments to defer from Monday.

NAB customers with fixed-rate home loans will get a rate reduction of up to 60 basis points, while home loan borrowers will get access to the six month repayment deferral, according to the ABC.

If you're looking to get a new loan, NAB will also cut two percentage points from it.

PA

Ms Bligh added: "At this stage, the most urgent and pressing need is for small businesses, and this package delivers across $100 billion worth of small business loans.

"It delivers up to $8 billion back into the pockets of small businesses as they battle with this virus and its impacts on their business."

People with repayments are encouraged to speak to their bank and talk about options that are on the table.

Pressure is now on for a similar relief be given to people who rent, as they too will be struggling during the pandemic.

Topics: News, coronavirus, Australia

Stewart Perrie

Stewart Perrie is a Trending Journalist at LADbible. His first job was as a newsreader and journalist at the award winning Sydney radio station, Macquarie Radio. He was solely responsible for the content broadcast on multiple stations across Australia when the MH17, Germanwings and AirAsia disasters unfolded. Stewart has covered the conflict in Syria for LADbible, interviewing a doctor on the front line, and has contributed to the hugely successful UOKM8 campaign.

@stewartperrie