Australian Banking Association CEO Anna Bligh has announced a significant small business relief package for COVID-19 impacted small businesses from Australia’s banks.

Banks will defer loan repayments for small businesses affected by COVID-19 for six months.

“This Assistance Package will apply to more than $100bn of existing small business loans and, depending on customer take up, could put as much as $8 billion back into the pockets of small businesses as they battle through these difficult times,” Ms Bligh said.

“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.

Ms Bligh said the relief package has been developed in consultation with the Treasurer and the Government to identify measures to support the economy through this crisis. Banks then developed the Small Business Relief Package following discussions with APRA and ASIC to provide the appropriate regulatory treatment. 

“Small businesses are the most vulnerable part of the economy and have the most urgent need for assistance,” Ms Bligh said. “Banks are putting in place a fast track approval process to ensure customers receive support as soon as possible.

“Small businesses can rest assured that if they need help, they will get it. Banks are already reaching out to their customers to offer assistance and packages will start rolling out in full on Monday,” she said.

Any small business who has not already been contacted should contact their bank to apply.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has praised the banks.

“This is a welcome initiative that will help many struggling small businesses keep their doors open during these extraordinarily challenging times,” Ms Carnell said.

Ms Carnell encourages all small business owners who are experiencing financial difficulties, to call their banks now, to make the necessary arrangements.

“Our small business sector is the engine room of the economy and it urgently needs support.

“As we navigate this unprecedented crisis, it’s encouraging to see our banks are taking this proactive approach and leading by example,” Ms Carnell says.

“In the meantime, my office will continue to advocate for additional measures to help small and family businesses stay afloat in this difficult period.”

The package is subject to authorisation by the ACCC.

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