New SME Recovery Loan Scheme
As of 7 April, St. George has launched its new SME Recovery Loan of up to $5million. With rates from 2.58% p.a., the SME Recovery Loan will provide continued support to Australian businesses impacted by COVID-19 or the recent floods.
Applications under the SME Recovery Loan Scheme will be open until 31 December 2021. Phase 2 of the SME Guarantee Scheme will remain open until 30 June 2021.
The St. George SME Recovery Loan will be available to eligible customers with a turnover of up to $250 million per ABN, who have either:
- received JobKeeper payments between 4 January 2021 and 28 March 2021; or
- been adversely economically affected by the recent floods.
Repayment deferral periods available
Customers can choose to defer their loan repayments for the SME Recovery Loan for a period of 6 and 12 months.
New and existing customers
The offer is open to new and existing customers and can be used to refinance the pre-existing debt of an eligible borrower, subject to several exceptions.
The new SME Recovery Loan is in addition to the support measures your customers may already have in place under Phase 1 and 2 of the SME Guarantee Scheme and provides critical, continued support to small business customers doing it tough due to COVID-19 or the recent floods.
SME Recovery Loan eligibility
To be eligible, your customer will:
- Have received a JobKeeper payment between 4 January 2021 and 28 March 2021 OR have been adversely economically affected by the recent floods
- Have an annual turnover of less than $250 million
- Have a valid ABN
- Be a tax resident of Australia - that is based, registered and operating in Australia
|Limit||Up to $5,000,000|
|Loan Term||Up to 10 years|
$0 establishment fees and $0 monthly account keeping fees for new loans approved
|Rates||Variable interest rate from 2.58% p.a. to 4.28% p.a. depending on security offered and whether a repayment deferral period applies|
|Deferral Period||Currently we have options to defer repayments for 6 and 12 months|
Directors Guarantees - New limited amount, GSA: New/Existing, SSA: New/Existing,
Other security may be required (as appropriate).
Note: Supporting security must exclude residential property or commercial/rural property that may be used for residential purposes.
- Upfront Commission: 0.10% (excl of GST) of the loan amount
- Trail Commission: 0.25% p.a. (excl of GST)
Loan Purpose and Eligibility
- Loans must be used for business purposes only (including to support investment), with limited exceptions.
- Loans cannot be used to purchase residential real property, the purchase of financial products, lending to an associated entity.
- Loans can be used to purchase non-residential real property (such as commercial property) or for the acquisition of another business.
- Loans may be used to refinance the pre-existing debt of an eligible borrower, with some exceptions:
- Loans secured by residential property cannot be refinanced.
- Loans that are more than 30 days in arrears, as at the application date, cannot be refinanced.
- Loans can be restructured as long as they continue to meet eligibility criteria (including the maximum loan term) and do not increase the loan limit after approval.
- Customers who have a controller, liquidator, administrator, restructuring practitioner, or trustee in bankruptcy appointed are ineligible.
Please ensure all the above conditions are met and the application process is followed accurately to avoid delays.
St. George remains committed to supporting Australian businesses recover from the COVID-19 pandemic and the recent floods. If you have any questions or need further support, please contact your BDM.
*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
This document is to be used as general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. This document has been prepared without taking into account any individual objectives, financial situation or needs. No member of the Westpac Group or any of their employees or directors gives any warranty of accuracy or reliability nor accepts any liability in any other way, including by reason of negligence for any errors or omissions contained herein, to the extent permitted by law.