Big banks support $20bn business loan guarantee

Announced on Sunday night, Australia’s biggest banks have thrown their support behind a new federal government plan to support the nation’s small and medium-sized businesses.

The government will guarantee 50% of new loans issued by eligible lenders to SMEs, with a pledge of $20 billion to support $40 billion in loans.

Three of the big four banks immediately announced concrete support for the government plan, with measures including:

• Extra funds made available for business loans
• Big rate cuts for unsecured business loans
• Bank staff proactively contacting businesses to offer support

The authorities have now unveiled $189 billion in stimulus, which is designed to help businesses stay afloat and keep Australians in work.