Bank boost for small business as they freeze loans

The federal government has launched a second wave of economic stimulus packages in an effort to halt the devastation caused by coronavirus on businesses across Australia.

The Reserve Bank of Australian has slashed it its rates to 0.25 per cent and rolled out a new money-printing program for the first time in Australia’s history.

The central bank will implement a $90 billion funding facility to try to soften the economic fallout from the ongoing Covid-19 pandemic that has engulfed the world.

The new measures include providing a three-year funding facility for cheap loans in an effort to support businesses that have seen cash flows dry up almost overnight.

Up to $15 billion would be used to allow smaller lenders to continue to support Australian consumers and small businesses.

Banks have also announced they will freeze small business customers’ loan repayments for up to six months.

“This is a multi-billion-dollar shot in the arm for small businesses when they need it the most,” said Australian Banking Association boss Anna Blight.

Sheridan Randall, 20^th March 2020