The Reserve Bank has released details of a new business continuity loan scheme that can help small businesses in the financial crisis.
The program, which provides loans for up to $15,000, will provide support for businesses in a number of sectors including financial services, the hospitality and tourism industry, manufacturing and energy.
The Reserve Bank said the scheme will help small business owners “develop the necessary skills to secure a job” while “supporting their small businesses from the very start of the financial transition”.
It said the loan scheme was a “new way to provide small businesses with the support they need to secure jobs and boost their bottom line”.
“The Government’s new small business loan scheme will allow small businesses to take the first steps in their recovery from the financial shock that hit them in the early 2000s,” Reserve Bank Governor Glenn Stevens said.
“The scheme provides the financial stability needed to support small businesses, and provide a lifeline to those in their hardest times.”
The scheme is available to businesses in all Australian states and territories.
Mr Stevens said it was a significant step forward in helping small businesses during the financial turmoil, and he encouraged businesses to apply for the program.
“We know from experience that the scheme provides a lifer to the businesses in their industry,” he said.”[Businesses] may need to wait a few months to get their loan through, but they will get the support that they need.”
Small businesses are expected to repay their loan within 18 months, and the interest rate is capped at 4 per cent.
The government’s announcement is the latest in a series of moves by the Reserve Bank to support the small business sector.
Mr Stevenson said the new loan scheme would provide a long-term boost to small businesses.
“This is a significant boost to the economy as a whole, which is why we are launching the scheme,” he told the ABC.
“Small businesses need to be given the support and the support is what they need right now.”
That support is from the Reserve and it’s a real benefit to the small businesses of this country.
“If you want to be part of the recovery and grow your business and provide value for your customers, you can get that loan now.”