Banks will defer loan repayments for small businesses

COSBOA is pleased and surprised by today's announcement from the Australian Banking Association that banks will defer loan repayments for six months for small businesses that need assistance because of the impacts of COVID-19.

Peter Strong, CEO of COSBOA, stated “this is totally unexpected and great news for the small business community. The banks have really responded to this crisis with an announcement that will provide relief for small business people confronting situations never experienced before.”

COSBOA notes the assistance package will apply to more than $100bn of existing small business loans and could put as much as $8 billion back into the budgets of small business families as they face difficult times.

Mr Strong added “there is more information to come, the package is flexible and realistic and the banks have worked hard to ensure there are no unintended consequences. The decision doesn’t remove the threat of the virus nor make customers come back into a business but it does provide some peace of mind for tens of thousands of small business people. We all hope that in 6 months time we will return to good times and once again run good, successful, employing businesses."

"The COSBOA board worked closely with government and the banks on a response and this exceeds what we expected. We congratulate Matt Comyn, the Chairman of the ABA and Anna Bligh, the CEO, for this outcome.”