Welcome to this month’s edition of the Dot Monthly..
If you’ve been impacted by the most recent lockdowns
Australia’s major banks have announced fresh support measures to help businesses and individuals affected by Sydney’s extended COVID-19 lockdown and other snap shutdowns and travel restrictions around the country.
• The 22 members of the Australian Banking Association are offering fresh COVID support to small businesses and home loan customers
• Small businesses can apply for a three-month loan deferral, mortgage customers can ask for a month-by-month reprieve
• Business groups have welcomed the move, but are warning members to seek advice if considering deferring and extending their loans
With restrictions being tightened on what kind of shopping is considered “essential” for the purposes of leaving home, more retailers are likely to join the ranks of hospitality and personal services businesses already shut or heavily affected by the lockdown.
Even before those tightened restrictions were announced, the Australian Banking Association (ABA) said its members, including the big four banks, would offer fresh support to customers struggling under the weight of lockdown restrictions.
The ABA stressed that these measures would be available to all small business and home loan customers significantly affected by current lockdowns or recovering from recent lockdowns, regardless of where they were located and what industry they were in.
What financial support is on offer?
Small businesses — with debts under $3 million and a turnover of less than $5 million — can apply for repayment deferrals of up to three months, with the deferred period added on to the end of the loan.
The loan must not have been in arrears prior to the latest COVID impact unless the customer was already on an agreed payment program with their bank.
Small businesses could also ask for refunds of their merchant terminal fees for up to three months and a waiving of fees on cash deposit and farm management deposit accounts for the same period.
Both business and individual customers can also ask their bank for a repayment deferral on their home loan.
Unlike last year’s blanket loan deferral offer, this would be assessed on a month-by-month basis between the customer and the bank.
On application, the support includes:
Business banking repayment deferrals:
• Up to 3 month repayment deferrals, with loan terms extended accordingly
• Offered to all small business customers (business lending less than $3m and a turnover of less than $5m), which includes up to 98% of small businesses
• Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)
Everyday banking support
• Refunds of merchant terminal fees for up to 3 months
• Waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for up to 3 months
Home loan support
• Range of support measures, including deferrals on a month by month basis
• Available to both individual and business customers
How to access the bank support?
Please contact me on either 0406 207 230 or Loui@dotfinancial.com.au to guide you through the process of applying for one of the above measures to support you during this time.