Australian banks are offering zero-interest loans to businesses in certain sectors to help them overcome challenges posed by soaring fuel prices.
Banks will administer such loans to businesses in identified priority sectors with an annual turnover of $100 million or less seeking a loan of up to $5 million. The initiative is part of the National Reconstruction Fund’s $1 billion Economic Resilience Program.
Australia Banking Association (ABA) CEO Simon Birmingham said many businesses are grappling with higher fuel costs and supply chain disruptions that resulted from the conflict in the Middle East.
“This will be important support for impacted businesses in areas such as freight and logistics, fuel, fertiliser and plastics manufacturing,” Birmingham said.
“Business customers are urged to get in touch with their bank to discuss eligibility for these loans and how they can apply,” he added.
Businesses that are not eligible for these government-supported loans can access other forms of temporary assistance.
Depending on individual circumstances, the assistance may include moving to interest-only payments, temporarily deferring payments, reducing or waiving fees, restructuring the loan term, flexible access to savings, or emergency increases in the credit limit.
“Banks have specialist teams ready to support customers across the country who may be struggling with a variety of challenges such as higher loan repayments, cost pressures or supply chain disruptions,” Birmingham said.
“Whether you are an individual customer or a business, banks stand ready with practical support measures to help you navigate this difficult period.”
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