HECS-style loans proposed for small business

Small business advocates have called on the federal government to provide a ‘HECS-style’ loan to struggling small businesses to help them avoid financial ruin as JobKeeper comes to an end in March.

Small Business Ombudsman Kate Carnell says it would be “revenue contingent” and only available to those who have been severely impacted by the pandemic.

“For businesses that are viable… Giving them a HECS- style loan, a revenue contingent loan, so they only start paying it back when their revenue gets above an agreed amount,” she told Tony Jones, filling in for Neil Mitchell on 3AW Mornings.

“This is really to reduce the risk for small businesses, and to give them some confidence going forward,” she said.

Ms Carnell says doing nothing after JobKeeper ends was not an option.

“It’s not businesses fault that borders get closed… And every time it happens those businesses get hit, and hit badly.

“We’ve got to help them if we want jobs to continue.”

Click PLAY to hear the interview below