The Australian Banking Association has announced further support for companies, especially smaller businesses, that have been affected by continuing COVID-19 lockdowns or those recovering from recent lockdowns.

Australian Banking Association CEO Anna Bligh said the proposed package, which includes loan repayment deferments from Australian banks, will help businesses suffering as a result of lockdowns throughout Australia.

Business banking repayment deferrals of up to three-months could soon be made, with loan terms extended accordingly.

This support will be available to all small business customers – businesses with lending less than $3 million and a turnover of less than $5 million. In addition, it will only be available for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank).

Everyday banking support will also be available from banks with refunds of merchant terminal fees for up to three months. Banks are also expected to waive fees and notice periods on cash deposit and farm management deposit accounts for up to three months.

Home loan support will be offered to business customers and individuals, and its range of support measures include deferrals on a month-by-month basis.

The national support package will be available to all small businesses irrespective of geography or industry.

Bligh said, “While we know that the Australian economy is in good shape, we also know that recent lockdowns have taken their toll on customers and the recovery can be slow.

“Customers can rest assured that if they need help, they will get it. Your bank will help you find a way through, don’t tough it out on your own.

Bligh also mentioned that Australian banks will also provide some support to larger businesses. These will be assessed on a case-by-case basis.

“Customers who need support should contact their bank. This pandemic demonstrates why strong and stable banks are so important for the nation’s economy. Banks are ready to do whatever they can to shield their customers from the impact of these recent lockdowns,” Bligh said.

The package is currently subject to re-authorisation by the ACCC, which the ABA is urgently seeking.

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