Australian banks are rolling out zero-interest loans for small and medium-sized enterprises under a new federal scheme designed to ease cash-flow pressure from global cost and supply-chain shocks.
Through the $1 billion Economic Resilience Program (ERP), administered by the National Reconstruction Fund Corporation, participating lenders will provide zero-interest loans of up to $5 million to eligible businesses with turnover below $100 million. The support is aimed at firms in critical sectors such as freight, logistics, fuel, fertiliser, plastics and other supply-chain industries that have been heavily exposed to recent disruptions.
In a media release, Australian Banking Association chief executive Simon Birmingham said, “Banks are stepping up to support the roll-out of these zero interest loans to businesses who are doing it tough as a result of the current conflict in the Middle East,” highlighting the focus on businesses facing sharp cost spikes.
Several lenders including ANZ and NAB have welcomed the scheme and confirmed their participation. ANZ will provide eligible business customers with zero-interest loans for terms of up to two years to help manage higher fuel and input costs, positioning the program as a way to steady margins and cash flow rather than add expensive new debt.
The ERP-backed lending sits alongside banks’ existing hardship and support measures. These include repayment deferrals, restructuring of existing facilities and temporary increases in working capital limits for some customers.
Industry leaders are emphasising the importance of early contact from customers under pressure.
“You don’t have to tough it out on your own. Get in touch with your bank to discuss what support options might be available to you,” Birmingham said.
In a media release, ANZ chief executive Nuno Matos added that, “By participating in this scheme, ANZ is offering practical, timely support to eligible businesses.”
With applications opening through major banks, the ERP is expected to play a key role in helping viable businesses manage cash flow through the current period of elevated costs and uncertainty.
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