TrailBlazer Finance joins the SME guarantee system
The track book lender has joined the panel of lenders for the second phase of the Coronavirus SME Guarantee Program and will launch a new product for brokers as a result.
Specialty lender TrailBlazer Finance (TrailBlazer), a boutique lender providing commercial loans, appraisals, and M&A advice and services to brokers and financial planners, has announced it has been accepted into the lender panel from the federal government Coronavirus SME Guarantee Program – Phase 2.
He joins 36 other lenders who have now been confirmed on the panel.
Speaking of its inclusion, TrailBlazer Finance CEO Jeff Zulman commented, “As a lender specializing in SMEs, we are all too aware of the extent of the burden that 2020 has placed on many small businesses.
“We are proud to have been selected as a lender participating in phase 2 of the government’s SME guarantee program.
Zulman revealed that following this participation, he will soon announce a new “low rate, fast turnover small business loan for mortgage brokers and other white collar workers to further expand our offering to SMEs than we serve”. . Further details on this product are expected in the coming weeks.
SME Guarantee System – Phase 2
On October 1, 2020, new step of the government guarantee program against the coronavirus for small and medium-sized enterprises (SMEs) launched.
The second phase of the program provides for the government to guarantee 50% of eligible loans taken out by participating lenders until June 30, 2021.
The expanded agenda builds on the first phase by shifting the focus from providing SMEs with emergency working capital to stay afloat, to helping businesses access more affordable, longer-term credit so that they can prepare and invest for the future.
It also quadruples the maximum loan size from $ 250,000 to $ 1 million per borrower, allows for guaranteed products (excluding residential property) and increases the maximum loan term to five years (previously three years).
While the interest rate on loans is determined by the lenders, it is capped at around 10 percent.
It is also at the discretion of participating lenders whether they wish to offer a period of repayment leave (which was mandatory as part of the first phase of the program).
Several lenders already have rolled out new products to meet the requirements of the new phase of the Guarantee program for SMEs against the coronavirus.
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Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .