Government backed loan & Superannuation!
Another a quick update on some of the additional financial assistance that the government has provided for small businesses. The government is providing up to $250,000 in unsecured loans, through various lenders that are eligible for this scheme. The list of lenders is currently undefined and more details are coming over the next few days/weeks. But this is what we know so far.
These loans will be backed by the Government. They are structured in a way where for the first 6 months, you won’t have to make any payments. The interest will however accrue during that period, and once the six month period is over, then your repayments will start with that interest added to the loan.
The loan term will be up to three years.
Now with these loans, if you don’t use them, then you don’t pay interest on the loan. So for small businesses, you can set this up as a backup. Should you need to dip into it, the funds are there for you. However, if you don’t feel like you need it, then you won’t be paying any interest on it.
Most lenders will also waive monthly fees, account fees, application fees. The loan itself will have estimated interest rates of about 5. 5% and its steps down to 4.5% after the six month period.
Those are just some preliminary figures. It’s going to vary from lender to lender. The criteria for these type of loans and your eligibility for it hasn’t been clearly defined by any lenders just yet.
Another way that the government is helping small businesses owners and their employees is with Early access to their superannuation.You will be able to access $10,000 of your super during this financial year and another $10,000 in the next financial year. You can access this by going to the MyGov website and finding out more information in regards to that.
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