SME Recovery Loan Scheme

Article by Dianne Brown


The Federal Government recently announced an expansion of the SME Recovery Loan Scheme.  Phase 2 of this loan scheme is designed to support our economic recovery and provide continued assistance to firms currently on JobKeeper.  The Government will work with lenders to ensure eligible businesses have access to finance to maintain and grow their business when JobKeeper ends.


  •  SME’s up to $250million turnover who were recipients of JobKeeper payments between 4 January 2021 and 28 March 2021
  • Self-employed individuals and not-for-profits are also eligible.

Key Features

  •  Government guarantees 80% of the loan
  • Repayment holidays up to 24 months
  • Loans can be used for multiple purposes including to support investment and refinance pre-existing debt
  • Loans can be up to $5million in total for a period of up to 10 years, with optional repayment holiday period
  • Loans can be secured or unsecured
  • Interest rates determined by lenders but capped at around 7.5% (variable rate loans may increase if market rates rise over time)
  • Loans will be made available from 1 April 2021 and must be approved by 31 December 2021.

Excluded loans

 SME Guarantee Scheme loans cannot be used to:

  • Purchase residential property or financial products
  • Lend to an associated entity
  • Lease, rent, hire or hire purchase existing assets that are > half-way into their effective life

If you wish to access the SME Recovery Loan Scheme, you need to contact a participating commercial lender.  For further information, please contact your SRJ Walker Wayland Advisor.