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Govt SME loan scheme extends to finance companies


Non-bank lenders say including them means better access to funding for small firms.
Finance companies say the extension of the government’s Covid business loan scheme to their sector will mean more specialised support for small firms.
The government-backed Business Finance Guarantee Scheme (BFGS) had been confined to the mainstream banks, but now includes five non-bank lenders.
The finance companies that are now offering the loan scheme are UDC, Prospa, FlexiGroup, Zip Business, and Spiers Finance Group.
Under the scheme, the government underwrites 80% of the credit risk on loans to small businesses suffering the effects of the Covid-19 pandemic.
The scheme has had a low take-up, however, and the government extended the parameters ....

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