Big 4 lend support amid COVID-19 pandemic

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April 24 2020
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Treasurer Josh Frydenberg has confirmed that the big four banks are lending support to Australian businesses by providing bridging finance for any organisation waiting for the JobKeeper payment.

Mr Frydenberg used his time in a press conference to explain the role the banking sector has agreed to, which includes special measures to speed up the finances to help small businesses survive before the government’s stimulus arrives.

“We are very conscious of the fact the banks are paying a vitally important role in bridging the finance that these businesses need to pay their staff ahead of receiving the first payment [of the JobKeeper allowance] in the first week of May,” Mr Frydenberg said.

Banks have already granted more than $700 million worth of loans to businesses aimed at supporting them during the health pandemic.

The industry has a range of support to small businesses affected by COVID-19, including six-month deferrals on loans attached to the business, extending existing lines of credit and waiving fees and charges.

Australian Banking Association CEO Anna Bligh said that banks are working tirelessly to process applications as quickly as possible. However, more needed to be done in order to ensure businesses meet the deadlines for eligibility for the JobKeeper program.

“Throughout this crisis, banks have worked hard to ensure they keep businesses afloat and keep people in jobs, with more than $700 million already lent to businesses to help see them through the pandemic,” Ms Bligh said.

Mr Frydenberg also confirmed the banks have agreed to a dedicated hotlines for their customers to call to receive the bridging finance necessary.

“Importantly, they have also agreed to expedite the process of all those applications to the front of the cue,” Mr Frydenberg said.

“So our message today, if you are a business or a not-for-profit organisation that is eligible for the JobKeeper payment, go to the bank, ring their hotline and ask for that support, and that support will be forthcoming,” the Treasurer continued.

Ms Bligh confirmed this, as well as highlighting businesses that are not members of the big four banks will likely receive similar treatment from their ADI.

“From today, banks are bolstering their efforts to fast-track any outstanding applications from businesses seeking funding to help them pay staff until the JobKeeper supplement is paid in May.

“A dedicated hotline will be set up by each major bank to help service the businesses requesting this important lifeline,” she said.

Other ABA member banks are looking to take actions relevant to their own customers, Ms Bligh concluded.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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