Expansion of Recovery Loan Scheme and JobSaver critical for business

As the COVID-19 crisis deepens across Sydney and Melbourne, the Federal Government’s expansion of both the SME Recovery Loan Scheme and joint JobSaver program with the NSW Government, offer a lifeline for thousands of businesses battered by ongoing lockdowns.

“These measures will save jobs and will save livelihoods,” ACCI chief executive Andrew McKellar said.

“With extended restrictions across the country, businesses are facing mounting costs.  The expansion of the SME Recovery Loan Scheme enables businesses that did not receive JobKeeper in the 2021 March quarter to be eligible for government-backed loans.

“Eligibility for JobSaver payments has also been extended for businesses in the hospitality, tourism and recreation sectors with an annual turnover up to $1 billion, increased from $250 million.

“ACCI has strongly advocated for additional financial support, noting that cashflow is an urgent concern for many struggling businesses.  After experiencing prolonged lockdowns, businesses are struggling to stay afloat.

“Mounting costs for businesses mean that increasing support is warranted.  Businesses still need to pay rent, interest on loans, electricity and internet bills as well as other fixed costs – an impossible feat for many businesses that are closed or have had to significantly reduce trading.  Without government assistance these expenses would continue to climb.

“The pandemic has proven that governments need to offer prompt and adaptable support to ensure that when our economy reopens, business can bounce back strongly.

“Until vaccination rates reach the thresholds required for reopening, it’s critical that governments continue to work together to ensure that businesses are supported.

“ACCI is keen to engage with governments and relevant stakeholders to ensure that available resources can be readily accessed and utilised.