Some numbers for you:
- 1. Gov’t Guarantee 50% of new loans, up to $40b. Runs from 23 March to 30 Sep;
- 3. CBA has lent $555m and NAB $370m about a quarter of the way through, and
- 4. If you assume WBC and ANZ are a little lower than NAB = $1.5b ish so far. x 4 = on target to lend $6b. Where will the other $34b come from?
- the process is difficult;
- the loans have to be in a sweet spot where things are bad enough to qualify for support but not so bad that the company is at any risk;
- they have gone from the press release of “unsecured” loans to “semi-secured” loans that need director guarantees, and
- the banks take forever to process.
It may be that the banks, understandably, don’t actually want to make more loans to small and medium businesses in the middle of a crisis.
If so, Depressionberg’s design of the scheme is at fault.