Banks Provide a Lifeline to SMEs as Sydney’s Lockdown Continues

The Australian Banking Association (ABA) has declared that its members are implementing a variety of measures to assist customers affected by the lockdowns in New South Wales and Victoria.

Businesses, sole proprietors, and individuals can all receive assistance, including loan payment deferrals.

“As the lockdowns worsen, clients can be confident that their bank will be there for them,” ABA CEO Anna Bligh stated. “[The] announcement in NSW means more businesses, construction workers and tradies will be unable to work in the coming weeks. If they are struggling financially, the best thing they can do is call their bank. Throughout the pandemic, Australian banks have worked with Government to support those most affected. They’re determined to see customers through the worst,” Bligh said.

The nationwide support package will be accessible to small business owners and home loan customers across Australia who have been adversely impacted by current lockdowns or are recovering from recent lockdowns.

The top four banks – Commonwealth Bank , ANZ , NAB, and Westpac – are among the ABA’s 22 members, as are regional and foreign banks.

The following are the primary support measures:

Business banking repayment deferrals

• Deferrals of business banking repayments
• Deferrals of up to three months are permitted, with loan terms lengthened appropriately.
• Offered to all small business customers (enterprise lending of less than $3 million and a turnover of less than $5 million), covering up to 98% of the country’s small firms.
• Only for loans that are in good standing (i.e. repayments up to date or engaged in a payment program with their bank).

Home loan support

• A variety of assistance methods are available, including monthly deferrals.
• Individual and business clients can take advantage of this service.

Everyday banking support

• Refunds on merchant terminal fees are available for up to three months.
• Fees and notice periods on Cash Deposit and Farm Management Deposit accounts are waived for up to three months.

The Australian Competition and Consumer Commission (ACCC) is required to reauthorise the package.

Ms Bligh stated that the pandemic highlights the importance of strong and stable banks to the nation’s economy. “Banks are ready to do whatever they can to shield their customers from the impact of these recent lockdowns,” Ms Bligh stated.

The announcement comes after the NSW government stated that it was “considering” providing more assistance to small companies affected by Sydney’s ongoing lockdown. To date, the NSW government has announced a support package of up to $10,000 in funding.