Prospa receives access to Federal Government’s SME Guarantee Scheme to support thousands of small businesses

Prospa Group Limited (ASX: PGL) announces it has received access to Federal Government’s Coronavirus SME Guarantee Scheme to help small businesses deal with the impact of COVID-19 over the next six months.

The Federal SME Scheme is designed to support smaller businesses who are considered by the lender as being viable in the longer-term. The Scheme provides selected lenders, including Prospa, with a government-backed guarantee of 50 per cent against the outstanding facility balance of eligible products.

Prospa has received an allocation of up to $223 million under the Scheme, which can be applied to all eligible new lines of credit and loans issued by Prospa between 14 April 2020 and 30 September 2020.

This guarantee allows Prospa to provide eligible small businesses with:

• Access to up to $250,000 in unsecured funding for up to 3 years, quickly and easily, with no upfront fees; and
• A 6-month repayment holiday with interest to be capitalised at the end of the 6-month period.

Stands ready to distribute essential working capital

As Australia’s leading online lender to small business, Prospa is uniquely placed to implement the Government’s initiative. The Company will continue to lend responsibly.

Greg Moshal, CEO of Prospa said, “It’s fantastic to see the Government understands what small businesses need right now to survive. Prospa has always focused on small businesses and access to this Scheme will empower us to support thousands of small businesses during this difficult time.

“The more access small businesses have to working capital, the better it is for the economy.

“The Government’s response has been swift and considered, and we look forward to doing our part in providing essential funding to the small business community.”