Applications open for eligible firms seeking up to $5 million, alongside broader hardship options
Australian banks have agreed to help deliver a new tranche of zero-interest business lending under the National Reconstruction Fund’s $1 billion Economic Resilience Program, with applications now available.
Under the arrangement, participating lenders will administer government-backed loans for businesses operating in designated priority industries. To qualify, applicants must have annual turnover of $100 million or less and be seeking up to $5 million.
The Australian Banking Association said the facility is intended for firms facing disruption linked to the conflict in the Middle East, including cost and supply pressures affecting parts of the economy such as freight and logistics and a range of manufacturing inputs.
“Banks are stepping up to support the roll-out of these zero interest loans to businesses who are doing it tough as a result of the current conflict in the Middle East,” said Simon Birmingham (pictured right), chief executive of the Australian Banking Association.
“This will be important support for impacted businesses in areas such as freight and logistics, fuel, fertiliser and plastics manufacturing. Business customers are urged to get in touch with their bank to discuss eligibility for these loans and how they can apply.”
Birmingham said firms that do not meet the scheme’s criteria may still be able to access temporary help through their lender.
“Banks have specialist teams ready to support customers across the country who may be struggling with a variety of challenges such as higher loan repayments, cost pressures or supply chain disruptions,” he added. “Whether you are an individual customer or a business, banks stand ready with practical support measures to help you navigate this difficult period.
“You don’t have to tough it out on your own. Get in touch with your bank to discuss what support options might be available to you.”
Support measures may include switching to interest-only repayments for a period, short-term payment deferrals, reduced or waived hardship fees, extending loan terms to lower monthly repayments, flexible access to savings or term deposits to manage near-term cash flow, and emergency credit limit increases or temporary overdrafts.
Initial participating banks include ANZ, Commonwealth Bank, National Australia Bank, Westpac, Bendigo Bank and Bank of Queensland, with further lenders expected to join.
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