Over the weekend, NAB announced it has introduced a new business loan established as part of the government’s Coronavirus SME Guarantee Scheme.
The scheme, available for new loans made by participating lenders until 30 September 2020, sees the government guaranteeing 50% of new loans issues to SMEs, supporting up to $40bn in lending to small businesses through encouraging lenders to remain willing and able to provide credit.
The new NAB Business Support Loan will provide access to quick working capital to help get businesses through the adverse cash flow impacts of the COVID-19 pandemic.
Businesses in need of a cash flow injection to stay open can apply for loans of up to $250,000 - with principal and interest repayments only applying after an initial six-month repayment holiday.
NAB’s emergency business loan will be offered at a reduced rate of 4.5% for eligible businesses which have an annual turnover of less than $50m for a term of up to three years.
According to Connective executive director Mark Haron, aggregators and industry associations have been working with lenders to make sure brokers can participate in the government schemes arising from the COVID-19 pandemic, in order that they don't "turn into another First Home Loan Deposit Scheme debacle."
However, there will be no broker commissions paid on these new emergency business loans. Rather, brokers have been recommended to put their customers in contact with their NAB business banker to assist them in this process.
“We are proud to partner with the government to bring vital relief to businesses so they can stay open, and keep Australians in jobs,” said NAB chief customer experience officer Rachel Slade.
“This pandemic has hit at the heart of Australian business – great businesses right across this country are overnight finding themselves with zero cashflow.
“With the government’s Coronavirus SME Guarantee Scheme, NAB is able to support even more businesses and ensure they are set for recovery when we get through this.”
Thus far, NAB has reported more than 14,500 personal and business customers have sought deferrals on their loans.