What Business Assistance Can You Get From the 4 Major Banks?

We know times are tough for many businesses right now, and that maintaining cash flow may be difficult as the coronavirus continues to affect the economy.

 

[The following is content provided by Tony Haworth of AAP Finance Brokers]

Small and medium-sized business customers may be eligible for a fast-tracked application on an unsecured loan of up to $250,000. I have drafted a summary for each major lender who will be assisting in this process and various links to website support if required.

ANZ Support for COVID-19 Affected Businesses

https://www.anz.com.au/promo/covid-19/

As of today, ANZ have yet to announce their updated business support loan process via the recent government stimulus program. I will update you further when this announcement comes through. In saying this they have outlined the following:

  • Decrease variable interest small business loan rates in Australia by 0.25% p.a., effective from 27th March 2020, resulting in a 0.50% p.a. reduction since last week.
  • All impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalised.
  • Making available temporary increases in overdraft facilities for 12 months.
  • A reduction by 0.80% p.a. to a new two (2) and three (3)-year fixed rate of 2.59% p.a. for secured small business loans up to $1 million3, effective 3rd April 2020.

CBA Support for COVID-19 Affected Businesses

https://www.commbank.com.au/latest/coronavirus/business-support.html

There will be no establishment or monthly fees for customers with less than $50m annual turnover, and no repayments required for six months. For the first six months, interest is deferred and capitalised initially at a variable rate of 5.5% p.a., reducing to 4.5% p.a. on 3 April 2020. After six months, principal and interest repayments will be required.

No interest will be payable unless the loan is used.

NAB Support for COVID-19 Affected Businesses

https://www.nab.com.au/personal/customer-support/covid19-help/business-support

To support businesses in need of a quick cash flow injection to stay open and keep people in jobs, NAB has announced a new Business Support Loan.

The Business Support Loan will enable eligible businesses to apply for a loan of up to $250,000 at 4.5% p.a. from NAB with no repayments required in the first six months. To be eligible, businesses must have an annual turnover of less than $50 million.

The criteria are outlined below:

  • Open to new and existing NAB Business customers – new applications only
  • Loans must be for business purposes
  • Loan term up to three years
  • Principal and interest repayments will apply only after an initial six-month repayment holiday
  • No application or loan services fees will apply
  • Loans will be available up until 30 September 2020

Westpac Support for COVID-19 Affected Businesses

https://www.westpac.com.au/business-banking/small-business-relief/

To provide further financial support for home lending, savings and small business customers, Westpac will introduce the following changes:

  • To support the cashflow needs of our small business customers, overdrafts will be reduced by 200 basis points for new and existing customers, effective Monday 6 April 2020.
  • 100 basis point reduction to variable interest rates on small business cash-based loans, effective Monday 6 April 2020.
  • A 2.29% p.a. fixed rate home loan for one, two and three years for owner occupied customers on principal and interest repayments with a Premier Advantage Package, effective Friday 27 March.
  • Special 12-month term deposit of 1.7% p.a. to provide customers a higher return on their savings, an increase of 70 basis points (up to $500,000 per customer). For Australians aged 65 years and over the rate will be 2% p.a. for eight months (up to $500,000 per customer). Effective Friday 27 March 2020.
  • 200 basis point reduction on overdrafts for new and existing customers.
  • 100 basis point interest rate reduction for small business cash-based loans.
  • Small business customers having cash flow issues can defer principal and interest repayments of business term loans for six months:
  • Merchant terminal rental fee waivers for up to three months.
  • Helping small and medium businesses take advantage of the increased instant asset write-off and accelerated depreciation provisions in the Federal Government stimulus package with no establishment fees for equipment finance loans until the end of June 2020.

I have also included a Westpac initiated Business Continuity Plan for any one who is looking to reset their businesses and trade through this crisis.

DOWNLOAD CONTINUITY PLAN

 

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