Do you operate a small business that has been significantly impacted by COVID-19?
The Australian Banks have recently announced that they will defer small business loan repayments for six months.
The Australian Bank Association chief executive Anna Bligh recently stated:
- Banks are seeing a rapidly and exponentially increasing volume of calls from small businesses in distress and unable to meet payments;
- In a move designed to keep a lid on unemployment and bankruptcies, banks’ are offering a deferral of principal and interest repayments on $100 billion of small business loans;
- Banks are also putting in place a fast track approval process so small businesses suffering cash flow pressures receive support as soon as possible; and
- It hopes to start deferring repayments for stressed borrowers as early as Monday.
What should you do?
If your business is in financial distress, get in touch with your bank provider as soon as possible to seek a deferral on your loan repayments.
Does this also apply to home loans?
No. The Australian Bank Association plan does not extend to residential home loan customers, however the banks have said they will adjust their response as the crisis evolves.
There are some banks that are offering deferrals on home loan payments. NAB said home loan customers experiencing financial hardship will be able to pause their home loan repayments for up to six months.
Please note that information arising out the COVID-19 issue is fluid and constantly changing every day. Should you have any questions, please do not hesitate to contact us on 9523 5535 or firstname.lastname@example.org