Source: Commonwealth Bank of Australia
With the second phase of the Federal Government’s SME Guarantee Scheme now underway, CBA is ready for credit demand to increase as businesses look to invest in the future.
Sunday, 11 October 2020: New figures from CBA, who was the leading lender during the first phase of the scheme, shows nearly two thirds (64 per cent) of the funding it provided was for businesses in NSW and Victoria.
CBA’s Group Executive for Business Banking Mike Vacy Lyle said it’s not surprising these business customers were the biggest takers of the Government-backed loans, given the stricter coronavirus measures that have been in place and the extended restrictions in Victoria.
“Obviously different lockdown measures have impacted some businesses more than others and many of our customers, particularly those in greater Melbourne and greater Sydney area, worked with our bankers to quickly ensure they had extra cash flow in case they needed it,” Mr Vacy Lyle said.
“It’s exactly what the first phase of the SME scheme was designed to do – to give businesses the support and peace of mind with extra funds in their accounts to help them stay afloat.
“Not surprisingly, given the uncertainty about the timing and trajectory of the recovery, demand for credit has been somewhat modest but I expect we will see an increase in demand with the expansion of the scheme terms.
“This next phase of the scheme will allow some businesses to continue to trade through ongoing challenges, and others to make important investment decisions that will set them up for the future.
“The flow of credit into the economy will underpin the country’s economic recovery and small businesses play a very big part in this.
“Certainly in the wake of the business measures announced in the Federal Budget this week, we’ve seen customer interest in funding through the scheme and our teams are ready to help.”