Australia's Small Businesses Get Support from Government, Big Banks

Australia’s Small Businesses Get Support from Government, Big Banks

CANBERRA, Australia – Australia’s Federal Treasurer Joshua Anthony Frydenberg has confirmed that the Commonwealth Government and the country’s banking sector will aid small businesses.

The latter are local enterprises that the coronavirus pandemic has severely affected lately.

Australian news outlet 9News reported that Frydenberg affirmed that a second stimulus from the Australian Government is coming.

Moreover, the Treasurer of Australia remarked that this forthcoming emergency package is a means to carry on backing small businesses nationwide.

Frydenberg relayed that the upcoming round of stimulus measures coming from the Federal Government will cushion the repercussions for Australians who lost their employment as well.

He explained that the second emergency stimulus package would not look at the structural alterations that are constant following the conclusion of the global crisis.

The Australian politician pointed out that they are concentrating on targeted measures utilising the existing transfer and taxation system.

Plus, they are focusing on making things as effortless and straightforward as possible for the people to obtain the assistance they need, he said.

The $90-billion financing for three years is for the banking institutions to aid small and medium-sized enterprises in the country.

Furthermore, the Commonwealth Government is going to provide $15 billion to small lenders.

Frydenberg said that they in the government desire bank loans to assist businesses in settling their fixed costs.

Among these expenses are utility bills that include water and energy expenditures, as well as rent and wages.

He described these bills as those that businesses have to carry on paying, even if they do not have customers.

Frydenberg remarked that they are creating the bridge to Australia’s recovery amid the coronavirus pandemic.

Also, the Federal Treasurer of Australia confirmed that the four big banking institutions of the country would unveil their economic stimulus measures through an official announcement soon.

Based on Sky News Australia’s report, Frydenberg has lauded the big banks like the National Australia Bank, the Commonwealth Bank of Australia, Australia and New Zealand Banking Group, and Westpac Banking Corporation.

These financial firms decided to postpone loan repayments for small enterprises that the pandemic involving the ailment, also known as COVID-19, has impacted.

The Australian Banking Association thinks that the postponement would inject $8 billion back into the coffers of these small businesses.

Furthermore, Frydenberg labelled these four big banks’ manoeuvre as a considerable pick-me-up that boosts the people’s confidence and a game-changer.

The first stimulus of the Federal Government amounted to $17.6 billion. This emergency package consisted of financial support that helped small businesses.

Welfare recipients also benefited from this monetary aid from the government. Meanwhile, the Reserve Bank of Australia slashed the cash rate to 0.25 per cent.

This number is the lowest in the history of the country. The central bank of Australia confirmed this move during yesterday’s emergency conference.

Furthermore, the Reserve Bank of Australia will begin purchasing government bonds. It is aiming to flood the financial system of the country with additional funding.

The Reserve Bank of Australia believes that, in this way, the domestic economy would function smoothly despite the coronavirus crisis.

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