Business Insights – 23rd September 2021 – SME Recovery Loan for business growth

I’m here with insights for Australian businesses on 23rd September 2021.

Many Tenfold clients are working with their business coach on their big picture plans, and we are using these lockdowns to plan for their business growth and expansion. The federal government SME recovery loan scheme may be a good option to fund those plans. The loans provide up to $5M for 10 years with the federal government guaranteeing up 80% of the loan.

The purpose of the loan can be almost anything to do with your business, so I encourage small business owners who are thinking about buying a factory, taking on large projects or other business expansion strategies to look into this.

Our business coaching team have reviewed the loan scheme. Our interpretation of the guidelines is that this loan will be available to all Tenfold clients and many small businesses, including self-employed. The scheme has been extended to 31 December 2021, however it is currently not open for applications (due soon).

Key points:

  • SMEs with a turnover of up to $250 million
  • Loans of up to $5M for 10 years
  • Govt guarantee 80% of loan
  • Applications are open from 1 October 2021 until 31 December 2021
  • Australia-wide


Other points to know:

  • Loans can be either unsecured or secured (excluding residential property)
  • You may be able to request a repayment holiday of up to 24 months
  • The interest rate will be determined by the lender, but will be capped at around 7.5%.


Summary of what you can use the loan for

Business investment purposes, such as:

  • purchase non-residential real property (such as factories, warehouses, commercial property)
  • acquisition of another business
  • to refinance any pre-existing debt, including previous loans from the SME Guarantee Scheme.


SME Recovery Loans cannot be used to:

  • purchase residential property
  • purchase financial products (such as shares)
  • lend to an associated entity, or
  • finance existing business assets (such as equipment and vehicles) that are more than half-way into their effective life.

The major Australian commercial banks are participating in the SME Recovery Loan Scheme, as well as some of the tier 2 lenders. As you’d expect, applications are subject to the lender’s normal credit assessment and decision process.

If you’re thinking about how external funding might support your business growth strategies and your big picture, speak with your coach. We can also refer you to a specialist commercial finance broker we work with for Tenfold clients. They can provide expert advice on how to structure the finance to suit your business.


Ashley Thomson B.Eng. (Hons), Grad. Dip. Mgmt, MEI
Managing Director
Tenfold Business Coaching