TrailBlazer Finance joins SME Guarantee Scheme

It joins 36 other lenders that have now been confirmed on the panel.

Speaking of its inclusion, the managing director of TrailBlazer Finance, Jeff Zulman, commented: “As a specialist SME lender, we are all too aware of how much of a toll 2020 has taken on many small businesses. 

“We are proud to have been selected as a participating lender in phase 2 of the Government SME Guarantee Scheme.”

Mr Zulman revealed that, as a result of the participation, it will soon announce a new “low-rate, fast-turnaround small-business loan for mortgage brokers and other white-collar professionals to further broaden our offering to the SMEs we serve”. Further details of this product are expected in the coming weeks.

SME Guarantee Scheme - Phase 2

On 1 October 2020, the new phase of the government’s Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme launched.

The second phase of the scheme sees the government guarantee 50 per cent of eligible loans written by participating lenders until 30 June 2021.

The expanded scheme builds on the first phase by shifting the priority away from providing SMEs with emergency working capital to stay afloat, to helping businesses access more affordable and longer-term credit so that they can prepare and invest for the future.

It also quadruples the maximum loan size from $250,000 to $1 million per borrower, allows for secured products (excluding residential property) and increases the maximum loan term to five years (previously three years).

While the interest rate on loans is determined by lenders, it is capped at around 10 per cent.

It is also up to the discretion of participating lenders should they wish to offer a repayment holiday period (which was mandatory under the first phase of the scheme).

Several lenders have already rolled out new products to meet the requirements of the new phase of the Coronavirus SME Guarantee Scheme.

[Related: Second phase of SME Guarantee Scheme launched]