One doesn’t expect a lot of compassion from a bank most of the time however in this moment of national crisis, the banks are stepping up to the plate and doing their bit. The Australian Banking Association (ABA) have announced that their members will defer loan repayments for six months for small businesses who need assistance because of the impacts of the coronavirus.
This unprecedented move by the banks is a game changer. It will provide a big boost to the confidence of small businesses at this difficult time.
Small businesses are the back-bone of the economy employing more than five million Australians who stand to benefit from this relief.
This relief will allow more than $100 billion of existing small business loans to be deferred and in doing so provide repayment relief of up to $8 billion over the next six months.
It follows the recent announcement by the Federal Government and the Reserve Bank of Australia (RBA) to inject $105 billion into the economy to support lending to small and medium sized businesses.
If your business is doing it tough and needs to get some breathing space, now is the ideal time to contact your bank and see what measures they might avail to help you. You can also go online to speak to their hardship teams. www.ausbanking.org.au/campaigns/financial-hardship
