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The major bank has announced the launch of a new funding facility for businesses affected by the coronavirus outbreak, however no broker commissions will be paid on these loans.
NAB has rolled out a new loan facility aimed at providing cash-strapped businesses grappling with the coronavirus (COVID-19) outbreak with up to $250,000 in funding.
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The new NAB Business Support Loan, launched as part of the federal government’s SME Guarantee Scheme, is available for businesses with an annual turnover of less than $50 million for a term of up to three years.
Further, as per the banking industry’s commitment earlier this month, principal and interest repayments would be frozen for the first six months of the loan term.
However, the loan, which will be available until 30 September, will primarily be offered via the proprietary channel, with brokers asked to refer eligible clients to a NAB business banker.
No commissions will be paid on these new emergency business loans.
Following the announcement, NAB chief customer experience officer Rachel Slade said the new facility would bring “vital relief” to businesses to ensure they can stay open and “keep Australians in jobs”.
“This pandemic has hit at the heart of Australian business – great businesses right across this country are overnight finding themselves with zero cash flow,” Ms Slade said.
“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.”
This follows similar announcements from NAB’s peers, with the Commonwealth Bank and Westpac also rolling out unsecured business loans for affected customers as part of the government’s scheme.
The government’s scheme guarantees 50 per cent of new loans issued by eligible lenders to SMEs.
The scheme aims to “enhance lenders’ willingness and ability to provide credit to SMEs” and can support up to $40 billion of lending to SMEs (with the government guaranteeing up to $20 billion).
It is hoped that the scheme will assist with cash flow and enable SMEs to pay staff, rent and bills.
[Related: ‘More help’ issued to SMEs and sole traders]
