Moneytech welcomes changes to Federal Governments SMEG 3 Loan Scheme

Non-bank Fintech lender, Moneytech Finance has welcomed the federal government changes to its SME Loan Recovery scheme announced this morning.

Until today, SMEs had to have collected Jobkeeper between the 4th of January 2021 and the 28th of March 2021 or had been affected by the floods in March 2021 to qualify for a loan under the scheme.

The announcement removes that eligibility criteria and broadens the amount of small and medium size businesses that qualify for lending. The scheme allows SME’s to borrow up to $5.0m in working capital finance which is 80% government guaranteed.

Moneytech’s Chief Executive Officer, Nick McGrath, said, “This is a fantastic announcement for Small to Medium businesses across Australia. With the extended lockdowns across the country, particularly in NSW and Victoria, we have seen a material uplift in SME’s requesting working capital support to help them through the pandemic. The changes announced this morning will be a welcome relief to many SMEs who will now be able to access funds that they were previously ineligible for. Under SME Loan Recovery scheme, Moneytech have been able to originate in excess of $60m worth of lending facilities supporting over 150 SME’s. These changes will allow us to support even more clients and referral partners across our Line-of-Credit, Trade Finance & Debtor Finance products.”

McGrath had previously called on the Federal Government to do more to help SMEs that have been impacted by the pandemic.

“SMEs are core to the success of the Australian economy, so we have been very vocal in our dealings with the Federal Government to make sure that we can do everything possible to help small businesses during these unprecedented times and its great to see the Government step up their support.”