The expansion will see the limit of eligible loans rise from $1 million to $5 million under the scheme, as well as a cost split shift which will see the government guarantee a higher portion of the loan. The shift would see the government’s 50-50 split with banks shift to an 80-20 split.
Businesses with a higher turnover are expected to benefit, too, as the cap on eligible turnover increases from $50 million to $250 million.
Borrowers will be offered a repayment holiday on both principal and interest for up to 24 months, with loan terms increased from five years to 10 years.
The expanded scheme will only be open to recipients of JobKeeper payments between 4 January and 28 March, and those that applied during the first phase of the scheme, with the government expecting more than 350,000 current JobKeeper recipients to be eligible.
The loans will be available from 1 April and remain open until 31 December.