For many small businesses, the past month has been the hardest they have ever faced. Revenue has dried up for some while others are surviving on a trickle. We hope those affected will find it reassuring to know that billions of dollars in government aid is in the pipeline.
Grants, subsidies, tax breaks and loan guarantees are among the relief coming. You may have read about some of these at our Business Continuity Hub. But the last type of help – loan guarantees – deserves further attention.
Under the Coronavirus SME Guarantee Scheme, the government has just named two dozen lenders that may extend federal-backed loans of up to $250,000. The government will guarantee 50 percent of new loans, which could make it easier for small businesses to qualify. The list of lenders should grow in the coming weeks.
In addition, major banks have committed to