Coronavirus (COVID-19) | Bank Support

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Small Business Assistance Package

On Friday 20 March 2020, the Australian Banking Association revealed that all small businesses hit by the COVID-19 pandemic will be able to access a six-month deferral of all loan repayments.

This package will apply to more than $100bn of existing small business loans and could put up to $8b back into the pockets of small businesses.

A deferment period is an agreed-upon time during which a borrower does not have to pay the lender interest or principal on a loan.

Interest will accrue during a deferment period, which means the interest is added to the loan amount at the end of the deferment period. Usually you would have two options to catch up on the repayment that were put on hold, the first is to increase your repayments to ensure the loan is repaid within the original term.  The second is to extend the loan term by the amount of the deferral period.

There are a few lenders that will apply the deferral to eligible business and equipment loans automatically and you will need to opt out if you would like to continue making your repayments. There are other lenders that you will need to contact to discuss the options available to you.

Yes if you are experiencing financial hardship you can request a deferment period. Eligibility criteria may apply and will change from lender to lender.

It depends on your circumstances, for example if you can afford to continue to meet your repayments you will pay less interest over the term of your loan. On a loan with a balance of $100,000 and an interest rate of 5%, if you were to differ your repayments for 180 days the balance at the end of the 180 days would be $102,465.

In addition repayment deferrals both state and federal government are implementing support packages to assist the business community.

At Vincents we are keeping track of the new announcements as they continue to be announced. We encourage all small businesses to reach out to their Vincents Advisor or Vincents Lending Solutions to discuss their specific situation and the options available to them.

To read more about the Small Business Loan Deferral, click here.

For contact details of the banks hardship departments please, click here.

List of bank specific support

There is currently a lot of support available to both business and consumers at this time and we wanted to provide you with a list of links that is easy to refer to when seeking support.

Support on offer depending on lender:

  • Repayment deferrals of up to 6 months for Small Business Lending
  • Repayment deferrals of up to 6 months for Home Loans
  • Repayment switch to Interest only
  • Govt backed business loans of up to 250K with reduced application criteria

We would also encourage early discussions around any loan conditions or covenants that may be applicable to provide the lender with time to seek approval to waive, defer or amend. It is important to be prepared and on the front foot when discussing alternative options available.

Vincents Lending Solutions are here to help you alongside your Vincents advisor and are happy to provide advice if you are unsure of the options available to you.

We have included a list of useful links below:

Banks Hardship Departments https://www.ausbanking.org.au/campaigns/financial-hardship/
Govt assistance Household https://treasury.gov.au/coronavirus/households
Govt assistance Business Link https://treasury.gov.au/coronavirus/businesses
 
Adelaide Bank https://www.adelaidebank.com.au/coronavirus-assistance/
ANZ – Home Loan https://www.anz.com.au/personal/home-loans/your-loan/covid-19/
ANZ – Business https://www.anz.com.au/promo/covid-19/
Bank Australia https://www.bankaust.com.au/support/alerts/
Bendigo – Home Loan https://www.bendigobank.com.au/help/coronavirus-assistance-package/
BOQNo Formal Package https://www.boq.com.au/help-and-support/assistance
CBA – Home Loan https://www.commbank.com.au/latest/support-for-home-loan-customers.html
CBA – Business https://www.commbank.com.au/latest/coronavirus.html?ei=anch_CTA
HSBC https://www.hsbc.com.au/help/covid-19-update
Macquarie https://www.macquarie.com/au/personal/coronavirus
NAB – Home Loan https://www.nab.com.au/personal/customer-support/covid19-help/home-owners-support
NAB – Business https://www.nab.com.au/personal/customer-support/covid19-help/business-support
Suncorp – No Formal Package https://www.suncorp.com.au/banking/covid19-information.html
Westpac – Home Loan https://www.westpac.com.au/help/disaster-relief/coronavirus/?pid=iwg:sc:COVID-19_2003:tile:car_per
Westpac – Business https://www.westpac.com.au/business-banking/small-business-relief/.html

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