Suncorp launches new SME support

Suncorp banking and wealth executive general manager business banking Glenn Haslam said the extension of the scheme and its enhancements are expected to assist more SMEs impacted by COVID-19, including those who are adapting or growing their businesses.

“Many businesses across Australia have had to change the way they operate, including mobilising workforces, transitioning to online sales, or dealing with stock issues as a result of restrictions,” Mr Haslam said.

“The second phase of the government-backed SME Support Loan will give SME customers greater flexibility, including accessing the loan for a broader range of business purposes.

“Adopting this scheme is part of our commitment to providing our SME customers with the support and guidance they need to get through this challenging time.”

The second phase of the government’s scheme, which launched in October, welcomed new lenders and new product structures.

The second phase quadrupled the maximum loan size from $250,000 per borrower to $1 million per borrower, allowing secured products and increasing from its current three-year limit to five years.

The scheme provides support for SMEs, including sole traders and not-for-profits, with a turnover of up to $50 million.

Mr Haslam noted that while phase two of the scheme can be either unsecured or secured, it cannot include residential property.

“We understand there is a high level of uncertainty for businesses, particularly those in impacted sectors such as retail, hospitality and tourism,” Mr Haslam said.

“The SME Support Loan can be drawn on by approved customers if and when they need it, with interest only charged when a customer chooses to access it,” he said.

Suncorp has informed its SME customers who are interested in phase two of the scheme to contact their broker, relationship manager, or call by phone to find out more about the process and to apply.

Various lenders, including the major banks, GetCapital and MoneyTech, have joined the panel of lenders for the second phase.

Westpac recently announced the details of its new offering under the new phase of the scheme, including interest rates for small businesses, and the launch of a new online form to assist businesses with their application process.

[Related: Suncorp overhauls serviceability policy]