The team at By The Numbers are here to offer continual support, advice and assistance throughout the coming weeks.
We believe it is important to update our clients regularly with relevant information to assist with their business at this time.
There have been some recent announcements that we would like to share with you.
Banks deferring small-business loan repayments for 6 months
The Australian Banking Association have announced that small business will be allowed to defer loan repayments for six months. This comes as an emergency measure in response to the growing effects of the Corona Virus on Australian businesses and the economy.
The Australian Banking Association is expected to apply the relief pattern to $100 billion of existing small-business loans.
This announcement follows the Reserve Bank’s recently announced emergency cash rate cut – a record low of 0.25 of a percentage point.
A $90 billion term funding facility for banks has also been announced to support small businesses.
Australian banks can borrow equal to 3% of their existing outstanding credit to Australian businesses and households. Additional funds are accessible if Australian banks provide further assistance to medium and small-sized businesses.
The Commonwealth Bank of Australia to lower cash-linked small-business loans
CBA is putting further support for small-businesses into motion – All business loans linked to the cash rate will benefit from a reduction of 100 bps.
In addition, merchant fees, draw fees and early redraw fees on business term deposit accounts will be waived, and repayments on vehicle and equipment finance can be deferred.
Government assistance available
As discussed in our previous article, there are a host of measures undertaken by the Government to assist businesses during the pandemic.
More information is available through the Treasury website in the following link: https://treasury.gov.au/coronavirus/businesses
Stay tuned for more information as we will continue to update on assistance available through the coming weeks.