The government has announced that it will extend the Small Business Cashflow Loan Scheme by 3 years. This means that businesses can access the Small Business Cashflow Loan Scheme until the end of 2023. Loans need to be repaid within 5 years of been taken.
The interest free period will also be extended from 12 Months to 24 Months. Interest rate of 3% applies when the interest free period expires and it is important to note that once the interest free period expires, interest is charged from the date the loan is drawn down.
The government will also change the criteria for what the loans can be used for. The new criteria will be broader, and businesses can use the loan for core business operating costs as well as for capital items such as to investing in new equipment and digital infrastructure.
Around 100,000 businesses have benefited from the Small Business Cashflow Loan Scheme with total lending of $1.6 Billion.