Business loan repayment deferrals end soon

In response to COVID-19, banks and other lenders offered their customers the ability to defer loan repayments for a period of up to six months. A significant portion of these repayment deferrals expire in September and October 2020.

Banks and other lenders are contacting customers whose repayment deferrals are expiring. Contact could be by letter, email, digital communications or phone calls.

Contact your bank or lender

If your business loan repayment deferral is expiring and you cannot commence full repayments or pay the amount deferred, it is important you contact your bank or lender. They will be able to work with you to find the most suitable option for your circumstances.The earlier you act, the more options there are likely to be available to assist you.

Read more about phase two of COVID-19 support on the Australian Banking Association’s website.

Seek advice

If you need advice for your business, speak to a trusted adviser such as an accountant, financial adviser or lawyer. Seeking trusted advice early can help you to better understand your options.

Help is available (at no cost) from a specialist financial counsellor at the Small Business Financial Counselling Support Line website or phone 1800 413 828.

ASIC’s Moneysmart website has resources and information to assist business owners to consider and manage their own personal finances and financial wellbeing.

Mental health support for small business

A difficult financial situation can have an impact on your mental health. Some useful small business resources are:

• Ahead for Business: Supporting small businesses to be mentally healthy
• Heads Up (supported by Beyond Blue) resources for small business
• Business.gov.au: How to manage risks to mental health in your business

Additional information

• COVID-19: what to do if your small business is struggling financially
• COVID-19: steps to protect your small business