Westpac Announces SME Guarantee Equipment Loan
The major bank is offering SMEs a new equipment loan under the second phase of the SME Coronavirus Guarantee Scheme.
Westpac has announced that it will be accepting applications from new and existing eligible customers for equipment and financial asset loans, as part of the second part of the Small and Medium Enterprise (SME) Coronavirus Guarantee Loan Program of the federal government.
For equipment and financial asset loans, Westpac said it is offering eligible SMEs (those with up to $50 million in annual revenue) equipment loans starting at 2.99% (fixed for five years) on loans up to $1 million (subject to total loans from all lenders under the program not exceeding $1 million).
This could be used in conjunction with the improved instant asset write-off measure and the federal government’s immediate full write-off measure.
Westpac said it will also waive the equipment finance set-up fee (generally starting at $450) on equipment finance loan applications submitted under Westpac’s SME Guarantee offering. Westpac, and settled between November 1, 2020 and close of business on December 31, 2020.
Commercial Division General Manager Guil Lima said the loan is designed to help SMEs upgrade critical technology and equipment, as well as other business assets.
“We know that many companies delay upgrading equipment and technology due to cost. Our research found that 58% of small and medium-sized businesses hold back on major purchases due to COVID-19 uncertainty,” Lima said.
“This new loan, coupled with the federal government’s Instant Asset Write-off program and immediate full expense measure, will help qualifying businesses make the critical improvements they need to grow and scale over time.”
Helping companies reinvest in their business by buying new equipment could make them more competitive and sustainable while increasing productivity in the workplace, Lima suggested.
“From a macro perspective, these initiatives will help encourage business spending in the economy, supporting the ongoing economic recovery across much of Australia. Above all, boosting business investment helps create jobs, an important national priority,” he said.
The latest announcement follows that of the big bank Release others offers under the plan.
According to Westpac Report on the SME response to COVID-19which was compiled based on a survey of 604 SMEs in September, 80% of SMEs either cut spending, postponed major purchases or suspended borrowing due to economic uncertainty.
Under the second stage Under the government program, which began on October 1, the maximum loan amount was increased from $250,000 per borrower to $1 million per borrower, allowing guaranteed products and moving from the previous limit of three years to five years.
According to Treasury figures, as of September 25, the program, worth a total of $40 billion, had supported only 20,611 loans worth $1.9 billion under the first phase. from the program.
[Related: Moneytech joins SME Guarantee Scheme panel]
Malavika Santhebennur is the Mortgage Headlines Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held roles at Money Management and Benchmark Media. She has been writing about financial services for six years.