Australian banks have backed the roll-out of zero interest loans for businesses under pressure from rising fuel costs, with applications now open through the Federal Government’s $1 billion Economic Resilience Program.

The loans, funded through the National Reconstruction Fund, will be available to eligible businesses in priority sectors with annual turnover of $100 million or less. Businesses can apply to borrow up to $5 million.

For companies dealing with freight blowouts, delayed stock or soaring input costs, that kind of support could be a timely circuit-breaker.

Australian Banking Association chief executive Simon Birmingham said banks understood many businesses were facing a rough patch as fallout from the Middle East conflict continued to hit costs and supply chains.

“Banks are stepping up to support the roll-out of these zero interest loans to businesses who are doing it tough as a result of the current conflict in the Middle East,” Birmingham said.

“This will be important support for impacted businesses in areas such as freight and logistics, fuel, fertiliser and plastics manufacturing.”

“Business customers are urged to get in touch with their bank to discuss eligibility for these loans and how they can apply.”

Who can apply

The program is aimed at businesses operating in sectors considered especially exposed to the current global disruption. That includes industries where higher transport costs, energy prices or raw material shortages can quickly squeeze margins.

Eligible businesses must have annual turnover of $100 million or less and can seek loans of up to $5 million.

That upper limit means the scheme is geared more toward established small and mid-sized businesses.

Initial participating lenders include ANZ, Commonwealth Bank, National Australia Bank, Westpac, Bendigo Bank and Bank of Queensland, with more lenders expected to join later.

Other options for business who missout

Not every business will qualify for the zero interest scheme, but Birmingham said banks still had other support options available for customers under strain.

“Banks have specialist teams ready to support customers across the country who may be struggling with a variety of challenges such as higher loan repayments, cost pressures or supply chain disruptions,” he said.

“Whether you are an individual customer or a business, banks stand ready with practical support measures to help you navigate this difficult period.

“You don’t have to tough it out on your own. Get in touch with your bank to discuss what support options might be available to you.”

That temporary assistance could include interest-only periods, deferred repayments, fee waivers, loan restructures, overdrafts or easier access to savings products to help with short-term cash flow.

If your business has been hit by fuel spikes or stock delays, now is the time to speak with your lender, ask direct questions and see what is actually on the table. No one wins points for suffering in silence.

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