Coronavirus SME Guarantee Scheme Phase 2


Phase 2 of the SME Guarantee Scheme closed for loans on 30 June 2021

The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme Phase 2 provided SMEs (including sole traders and not-for-profits) with vital additional funding to help them get through the impact of Coronavirus, recover and invest for the future. Under the Scheme, the Government provided a 50 per cent guarantee to participating lenders to enhance their ability to extend credit to SMEs.

Phase 2 of the Scheme supported secured and unsecured loans for up to $1 million for terms of up to 5 years with a cap on interest rates. Phase 2 of the Scheme commenced on 1 October 2020 and ceased for loans on 30 June 2021.

Interest rates were capped at 10 per cent for fixed rate loans. For variable rate loans the cap is 10 per cent plus an amount calculated using the Bank Bill Swap Bid Rate. The Scheme Rules [PDF 594KB] have more information on how interest rate caps rates are calculated. Rules for interest rates varied between schemes. In the first instance check the details of your loan agreement as well as the relevant scheme rules.

The following lenders have been approved to participate in Phase 2.

  • ANZ
  • Banjo
  • Bank Australia
  • Bank of Queensland
  • Bendigo and Adelaide Bank Ltd
  • Bigstone Lending
  • Commonwealth Bank of Australia
  • Community First Credit Union Limited
  • Credabl
  • Custom Service Leasing Pty Ltd
  • Earlypay
  • Fifo Capital
  • Finstro Securities Pty Ltd
  • Flexirent Capital
  • Get Capital
  • Heritage Bank Limited
  • Hume Bank Limited
  • IQumulate Premium Funding
  • Judo Bank Pty Ltd
  • Liberty Financial
  • Metro Finance Pty Ltd
  • Moneytech Finance
  • Moula Money
  • National Australia Bank Limited
  • Pepper
  • Prospa
  • Queensland Country Bank Limited
  • Regional Australia Bank Ltd
  • Social Enterprise Finance Australia
  • Southern Cross Credit Union
  • South West Credit Union
  • Speedy Finance
  • Suncorp-Metway Limited
  • The Mutual Bank
  • TrailBlazer Finance
  • Unity Bank
  • Volkswagen Financial Services Australia
  • Westpac Banking Corporation
  • Zip Business