Home Forums Money matters Government guaranteed SME loan program woes

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  • #1000215
    DrGear
    Member
    • Total posts: 31

    Anyone else had issues in trying to get anything in the government guaranteed loan scheme?

    I own a music/repair/tuition business and covid struck just as our tuition side was picking up for the beginning of the year. We had a huge uptick in enrollments and run a ‘first 3 lessons free’ special at the beginning of each year so a few weeks after the year starts, cash flow goes way up.

    So we lost about $5-7K per month in profit. Thankfully, a large portion of our students stayed on and we didn’t lose money. Our shop and repair department also plodded along. We were lucky that our lease expired and we moved a few doors down to something half the rent with a 6 month rent free period.

    Spoke to the Commbank who we’ve been with for a long while. Got together the stacks of paperwork they needed and sent it all through and they just said they wouldn’t bother sending it onto the assessment team as it probably wouldn’t be approved.

    So what is the point of the scheme? We’ve grown almost 100% year on year since the business started.

    Anyone else had similar issues getting anything? We’ve been lucky to keep our head above water through all this, I’d hate to think what it would be like for those who weren’t so lucky and were looking to get in on this.

    #1223421
    JamesMillar
    Participant
    • Total posts: 1,676

    Has the entity been profitable for the last few years?

    Have you spoken to a broker representing other banks?

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