SME Guarantee Scheme Phase Two Business Loans

At a glance

2.69 ^%P.A.¹

3-5 Year fixed rate

3.09 ^%P.A.¹

Variable rate

FLEXIBLE

Interest only repayments available up to the maximum 5 year loan term

^$ 1M

Maximum loan amount

What is the Scheme?

The Federal Government has launched Phase 2 of the SME Guarantee Scheme to continue to provide eligible small and medium enterprises (SME) with access to additional funding.

For businesses, this means better access to finance if you’re looking to adapt to a new operating environment, support current or upcoming cash flow needs, or invest for the future.

About the Scheme

The Government SME Guarantee Scheme Phase 2 (SMEG 2) is available to all eligible new and existing BOQ customers with no requirement that you have been negatively impacted by COVID-19.
Maximum lending limit of $1 million per ABN holder.
Option to choose either unsecured or secured loans (excluding residential property).
A broad range of accepted borrowing purposes:
- SMEG 2 lending must be new lending for business purposes.
- Refinancing of Phase 1 or Phase 2 loans is acceptable within the Phase 2 maximum lending limit of $1 million.
- Lending cannot be used to:
  - purchase residential property or a financial product;
  - refinance, extend or increase any existing non-Scheme lending;
  - lease, rent, hire or hire purchase any existing assets that are more than half way into their effective life; or
  - on-lend to an associated group entity.

Who is eligible?

Small to medium businesses and not-for-profit organisations who meet the following requirements are eligible to apply:

Have an active ABN and are conducting business in the current financial year; and
Have annual turnover of less than $50 million in FY 2019-20 or projected turnover of less than $50 million in FY 2020-21; and
Have not already received the maximum $1 million of Phase 2 lending from any provider(s); and
Are not a self-managed super fund.

Signed loan documentation must be returned to BOQ by 30 June 2021.

What is BOQ offering?

Up to $1 million SME Guarantee Phase 2 lending per business entity ABN (minimum of $20,000)
Business Term Loans with:
- a maximum 5 year loan term; and
- reduced interest rates from 2.69% p.a. fixed¹ and 3.09% p.a. variable¹ secured
Business Lines of Credit with:
- a maximum 4 year loan term; and
- reduced variable interest rates from 4.49% p.a. secured¹ and 4.99% p.a. unsecured¹
Up to 70% Loan to Value Ratio (LVR)²
$750 establishment fee and no ongoing fees
Interest only repayments available
The facility is repayable at the expiry of the loan term
Option to review loan structure at the end of the loan term, subject to relevant credit and other approvals at that time.