ABA Announces Relief For Small Businesses
20 March 2020
Australian Banking Association Chief Executive Anna Bligh says all small businesses who are impacted by COVID-19 will be entitled to a six month deferral on all loans.
"All that businesses will have to do is register their need with their bank. Banks are not going to wait for businesses to come to them - they are, right now, out in the field, talking to their business customers, putting things out through their customer channels and telling customers how they can reach their banks to access this deferral of payments."
Ms Bligh said if they start to see any "similar critical need" in other parts of the community, including mortgages, this lifeline may be extended.
"But 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."
“This is a multi-billion-dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs,” Ms Bligh said today.
"It delivers up to $8 billion back into the pockets of small businesses as they battle with this virus and it impacts on their business."
The package is subject to authorisation by the Australian Competition and Consumer Commission (ACCC).
Whilst the banks are seeking to fast track approvals, the Council of Small Businesses of Australia are urging businesses to be patient as the banks are going to get a lot of calls.
We will send through further updates as they become available.
Sourced from www.ausbanking.org.au