Federal government-approved non-bank lenders say they have no choice but to charge COVID-19-stricken SMEs credit card-style interest rates under a plan from Treasury designed to get cheap credit flowing during the virus crisis.
Under the Coronavirus SME Guarantee Scheme announced on March 22, the federal government pledged to make $40 billion in loans available through approved lenders backstopped by a 50 per cent government guarantee.
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James Frost writes about banking, funds management and superannuation. Based in Melbourne, James has been reporting on specialist business and finance topics for 15 years. Connect with James on Twitter. Email James at james.frost@afr.com