Australian Government expands SME Loan Recovery Scheme

In recognition of the continued economic impacts of COVID-19, the Australian Government is providing additional support to small and medium sized businesses (SMEs) by expanding eligibility for the SME Recovery Loan Scheme.

On 25 August 2021, the Treasurer has announced that the requirement for SMEs to have received JobKeeper during the March quarter of 2021 or to have been a flood affected business in order to be eligible under the SME Recovery Loan Scheme will be removed.

As with the existing scheme, SMEs who are dealing with the economic impacts of the coronavirus with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.

Other key features of the SME Recovery Loan Scheme include:

  • The Government guarantee will be 80 per cent of the loan amount.
  • Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
  • Loans can be used for a broad range of business purposes, including to support investment.
  • Loans may be used to refinance any pre-existing debt of an eligible borrower, including those from the SME Guarantee Scheme.
  • Loans can be either unsecured or secured (excluding residential property).


The loans will be available through participating lenders until 31 December 2021. The expansion complements other financial support the Commonwealth is offering to businesses impacted by the current COVID-19 health restrictions.

More information on the scheme can be found at

For more information on stimulus measures available in NSW and QLD please see our full COVID-19 coverage.


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