The Australian Federal government has announced a new financial support loan to help Australian exporters bounce back.
Australian exporters impacted by the COVID-19 crisis will now have access to business-saving loans between $250,000 and $50 million under a new $500 million capital facility to be administered by Export Finance Australia.
The new COVID-19 Export Capital Facility that was announced on April 15 will target loans to established and previously profitable exporters who, due to COVID-19, are unable to gain finance from commercial sources.
Simon Birmingham, Federal Trade Minister said the loan will provide a lifeline to Australian exporters to help them maintain their operations.
“Rising export costs, disruptions to supply-chains and loss of markets are some of the factors that are making it difficult for exporters to access vital commercial finance,” he said.
“This critical financial assistance will help exporters to get back on their feet through helping to re-establish markets, or provide working capital support or help exporters purchase new equipment to expand their operations.”
Simon said helping the nation’s export sector to get access to business-saving finance is crucial to reducing job losses through this crisis and a critical part of economic recovery.
The COVID-19 Export Capital Facility complements other initiatives to sustain exporters, and position them to rebound quickly, including the Small and Medium Enterprises (SME) Guarantee Scheme that will support up to $40 billion of lending to SMEs.
Under this scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SME up to $250,000.
In addition to the COVID-19 Export Capital Facility, Export Finance Australia will also provide assistance to its existing customers through access to credit and financial relief.