Businesses in need of a quick cash flow injection to stay open and keep people in jobs will be able to apply for a loan of up to $250,000 at 4.5% p.a. from NAB with no repayments required in the first six months.
The loan, established to participate in the Federal Government’s Coronavirus SME Guarantee Scheme, will support businesses by giving them access to quick working capital to help get them through the adverse cash flow impacts as a result of the COVID-19 pandemic.
The new NAB Business Support Loan will be offered at the reduced rate for affected eligible businesses which have an annual turnover of less than $50 million for a term of up to 3 years. Principal and interest repayments will apply only after an initial six-month repayment holiday. The loans will be available until 30 September 2020.
“We are proud to partner with the Government to bring vital relief to businesses so they can stay open, and keep Australians in jobs,” NAB Chief Customer Experience Officer Rachel Slade said.
“This pandemic has hit at the heart of Australian business – great businesses right across this country are overnight finding themselves with zero cashflow. With the Government’s Coronavirus SME Guarantee Scheme, NAB is able to support even more businesses and ensure they are set for recovery when we get through this.”
The NAB team are busy helping more than 14,500 personal and business customers who have sought deferrals on their loans so far. Customers looking to apply can visit www.nab.com.au/coronavirus
Today’s announcement is in addition to the support NAB is already providing support for customers dealing with the impact of the Coronavirus pandemic:
- Business customers experiencing financial difficulty can apply to defer their payments on a range of floating and variable rate business loans for up to six months.
- Home loan customers experiencing financial challenges will also be able to apply to pause their repayments for up to six months.
- A reduction in variable rates on small business loans by 100bps, effective March 30 – on top of the 25bps reduction announced on March 13.
- Reductions of up to 60bps to fixed rate home loans to give customers the option of added certainty (no changes to SVR)
- A fee wavier on merchant terminals for business and HICAPS customers for up to six months.