The Australian Banking Association announced a COVID-19 small business relief package yesterday.
Key features include:
- A deferral of principal and interest repayments for all term loans and retail loans of a small business customer for 6 months (interest will be capitalised)
- It will be open to all current small business customers of a Participating Member Bank, where the customer has advised that its business is affected by COVID-19, in all sectors of the economy
- Member Banks may elect to offer the small business relief package. They are also able to individually decide to offer relief that extends beyond the minimum terms of the small business relief package.
- It will go to any small business – defined as customers with less than $3 million in total debt owed – struggling as a result of COVID-19
- At the end of the deferral period, businesses will not be required to pay the deferred interest in a lump sum: either the term of the loan will be extended, or the level of loan repayments will be increased.
- Banks that have agreed to participate in the ABA plan are AMP Bank, ANZ, Bank Australia, Bank of Queensland, Bendigo and Adelaide Bank, CBA , HSBC, Macquarie Bank, NAB, Suncorp Bank and Westpac.
Please click the link for more details – https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/australian-banking-association
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