Banks extend loan deferrals for salon owners

Good news if your salon has loan obligations with the banks. The Australian Banking Association (ABA) has announced that it will extend its loan deferrals programme for small businesses that are still struggling due to the pandemic.

The ABA announced that banks will extend deferred loans for an additional four months, with 800,000 borrowers – who have borrowed around $260 million – potentially benefiting from the move. The extension has been approved by the Australian Prudential Regulatory Authority (APRA) and the Australian Securities and Investments Commission (ASIC), both bodies having committed to help businesses severely impacted by the pandemic.

“Small-business owners who have been worried about how they will repay their loans come September, will be breathing a huge sigh of relief today,” said the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell. “I would encourage small businesses who are experiencing financial difficulties, to call their banks now to make the necessary arrangements. With hundreds of small businesses now facing another devastating six weeks of lockdown in parts of Victoria, it’s clear that this is not over and the path to recovery will be prolonged. As we navigate this unprecedented crisis, it’s encouraging to see our banks are taking this proactive and flexible approach,” Ms Carnell added. “We want to see as many small businesses survive this difficult time as possible. The ABA announcement is an important piece of that puzzle.”

According to business advisor Shayne Goodell, salons shouldn’t wait until they’re in financial trouble to take advantage of the deferral offering. “This is an opportunity to ensure you stay on the front foot; deferrals generally don’t come with extra fees or penalties, so use it and give your business the best chance at solidifying itself before things go wrong.”

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