‘Very useful’ government backed loans flowing to small businesses
Commonwealth Bank CEO Matt Comyn says the government’s Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme has been a ‘very useful initiative’.
50% of the loans are guaranteed by the government, providing SMEs with access to critical low-interest funding while ensuring the banks are encouraged to be generous when extending additional credit.
“We’ve processed and approved 3,700 loans to small businesses, approximately $315 million worth of loans since the scheme was announced,” Matt Comyn tells Brooke Corte.
Many businesses have experienced dramatic declines in revenue and are struggling to cover their payroll obligations until the JobKeeper wage subsidy kicks in, however Matt Comyn says the bank is taking that into account.
“We’ve been bearing that in mind in the lending decisions and also taking very much a retrospective view to try and help as many viable businesses get through some very challenging trading conditions.
Click PLAY to hear the full interview with Commonwealth Bank CEO Matt Comyn: