Non-bank Fintechlender, Moneytech Finance has calledon the federal government to extend its SME Loan Recovery scheme referred to asSMEG2 in the face of extended lockdowns.
Under the federalgovernment’s Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme,which commenced on 1 October 2020 and expired on June 30th 2021, SME borrowers were able to access up to $1.0m in funding support due to the pandemic through accredited banks and non-bank lenders.
Moneytech’s ChiefExecutive Officer, Nick McGrath, said “with the extended lockdowns across the country, particularly in NSW and Victoria, we have seen a material uplift inSME’s requesting working capital support to help them through the pandemic.Under both the SMEG2 and SMEG3 programs, Moneytech have been able to originate in excess of $50m worth of lending facilities supporting over 150 SME’s. The Benefit of the SMEG2 program was that it supported most SME’s with lending upto $1.0m, the SMEG3 program is excellent but the borrowers eligibility is much narrower as the client must have collected Jobkeeper between the 4thof January 2021 and the 28th of March 2021”.
McGrath said, “we believe with an extension of phase 2 of the SME Loan Recovery scheme that many businesses facing hardship will be able to access vital working capital to assist ongoing trading. Lenders such as Moneytech sit waiting and ready to work with the federal government on such initiatives”.
“Our customers have given us very strong feedback, that whilst previous Government support has been appreciated, they are now facing a new struggle with no end in sight and are looking to finance providers to help. I believe lenders are better positioned to achieve this with further support, similar to SMEG2 & SMEG3, from theFederal Government”