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What is the SME Recovery Loan Scheme?​

The SME Recovery Loan Scheme provides support to businesses impacted by COVID-19 or the floods earlier this year.​

Loans can be used to invest, buy commercial property or to acquire another business. Eligible customers may be able to refinance existing business loans1. Applications close 31 December 2021. 

Features and benefits​

  • Variable interest rates from 2.58% p.a.
  • Option to defer repayments​ 2
  • Loan terms of  3, 5, 10 years
  • Partially and fully secured options

Check if you're eligible

Has your business received, or was entitled to receive, a JobKeeper payment between 4 January 2021 and 28 March 2021?

Has your business been adversely economically affected by the floods in March 2021 and is in a relevant Local Government Area?⁵

You may be eligible for a SME Recovery Loan

SME Recovery Loan at a glance​​

Up to $5 million

No establishment fee or monthly account keeping fees4

Variable rates:
From 2.58% p.a. to 4.28% p.a.3


Additional eligibility requirements​

Your business must also:​

  • Have an annual turnover of less than $250m​
  • Be trading for more than 12 months and have a valid ABN​
  • Be a tax resident of Australia – that is based, registered and operating in Australia.

How do I apply?

Submit an enquiry and a Business Lending Specialist will call you to talk through next steps. 

If you’re an existing Westpac customer with a Relationship Manager, we’ll pass on your details and they will contact you directly. 

To prepare for the call, it’s worth having details of your business’ financial situation to hand. We’ll talk about any additional information we need when we contact you. 

Want a step-by-step guide? We’ve broken down how to apply for a SME Recovery Loan in this article. 

Applications close 31 December 2021. 

Frequently asked questions

Once you reach the end of your loan repayment deferral period, accrued interest and fees will be added to your loan facility and you’ll be required to start making loan repayments.

Not during the repayment deferral period but once interest is added to the loan at the end of the period, interest will be charged on the total balance.

Yes, interest will accrue during the loan repayment deferral and will be added to the loan balance at the end of the period.

Yes, provided they meet the eligibility criteria.

Residential Property is defined in the rules of the Scheme and means land or a building that is, or is capable of being, occupied as a residence for residential accommodation in whole or in part, other than:

(a) a hotel, motel, inn, hostel or boarding house;

(b) premises used to provide accommodation in connection with a school;

(c) a ship that is mainly let out on hire in the ordinary course of a business of letting ships out on hire;

(d) a ship that is mainly used for entertainment or transport in the ordinary course of a business of providing ships for entertainment or transport;

(e) a marina at which one or more of the berths are occupied, or are to be occupied, by ships used as residences;

(f) a caravan park or a camping ground; or

(g) anything similar to property described in paragraphs (a) to (f).

Note: land or buildings in (a) to (f) are eligible to be financed under this Scheme.

The SME Recovery Loan Scheme is open to businesses who received a JobKeeper payment between 4 January 2021 and 28 March 2021.

You may also be eligible if you have been adversely economically affected by the floods occurring in March 2021 and are located or operate in the relevant Local Government Areas (LGA)5.

You may want to consider other support options that you may be eligible for including:

Loans issued under the Scheme can be used to refinance existing loans or for a broad range of businesses purposes including: 

  • Business assets 
  • Working capital 
  • Commercial property 
  • Acquiring another business. 


Loans cannot be used to:  

  • Purchase residential property; 
  • Purchase financial products; 
  • Lend to an associated entity; or 
  • Lease, rent, hire or hire purchase existing assets that are more than half way into their effective life. 

Yes, eligible borrowers can access up to $5 million, in addition to the Coronavirus SME Guarantee Scheme Phase 1 and Phase 2 loan limits.

The SME Recovery Loan Scheme specifically provides support for businesses who received JobKeeper or were affected by the March 2021 floods. The Scheme introduces increases in loan size and loan terms allowing lending up to $5 million and 10 year loan terms. It also provides the option to defer repayments and allows for refinancing of existing debt. 

Under Phase Two of the Coronavirus SME Guarantee Scheme loans were limited to $1 million and 5 year terms, and you couldn’t refinance existing debt. 

SME Recovery Loan Scheme: How it could help your business

Find out how the Federal Government's SME Recovery Loan Scheme could help your business recover and grow.


You’re not eligible​

Based on your answers, your business isn’t eligible.

The good news is we have other finance options you may be eligible for.

We're here to help

We have a range of finance options to help your business recover.

Business overdraft

Access extra funds so you can pay suppliers and wages when cash flow gets tight. 

Business loans

Funds to support the day to day running of your business. Borrow from $20K with flexible repayments.

Things you should know

Credit criteria, fees, charges, terms and conditions apply.

1. Excludes facilities secured by residential property or facilities that are more than 30 days in arrears.​

2. An interest rate premium may apply where a payment deferral period is selected. Interest will accrue during the period of the repayment deferral.​

3. Depending on security offered and whether a repayment deferral applies. Security supporting these loans excludes residential property.​

4. Other fees and charges apply.

5. Business must be located or operate within a relevant Local Government Area. Please refer to the Treasury website to confirm which areas are included as ‘Flood Affected Local Government Areas’ by the Federal Government under the scheme.