Highlands News

Small business able to defer loan repayments

corona update

Small businesses impacted by the coronavirus crisis will be able to defer their loan repayments for six months under a plan put forward by the banking industry.

"This is a multi-billion-dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs," Australian Banking Association chief executive Anna Bligh said on Friday.

"All that a business has to do is register their need with their bank," Ms Bligh said.

Friday's announcement follows the Reserve Bank cutting the interest rate to a record-low of 0.25 per cent in an historic suite of measures to offset a likely loss of jobs and income during the COVID-19 pandemic.

Australia's small businesses collectively have $100 billion in loans and this bailout could put up to $8 billion back in their pockets, Ms Bligh said.