Ewen McRae
By Ewen McRae
Local businesses impacted by the COVID-19 pandemic got some welcome news last week, with an extension of the banks’ loan deferral announced.
The Australian Banking Association’s (ABA) announced last week they would extend deferred loans for small businesses that are still struggling for an extra four months.
The announcement is set to help as many as 800,000 borrowers with deferred loans worth an estimated $260 billion.
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said it was a welcome announcement.
“Small business owners who have been worried about how they will repay their loans come September will be breathing a huge sigh of relief today,” Ms Carnell said.
“I would encourage small businesses who are experiencing financial difficulties to call their banks now to make the necessary arrangements.”
With a number of businesses in Melton now back in lockdown for a further six weeks, Ms Carnell said the focus had to turn to survival and ensuring local businesses could thrive in the future.
“With hundreds of small businesses now facing another devastating six weeks of lockdown in parts of Victoria, it’s clear that this is not over and the path to recovery will be prolonged,” she said.
“Small businesses are going to need further support, such as the loan deferral extensions announced today.
“As we navigate this unprecedented crisis, it’s encouraging to see our banks are taking this proactive and flexible approach.
“We want to see as many small businesses survive this difficult time as possible. The ABA announcement today is an important piece of that puzzle.”
