Covid-19 loan repayment deadline approaching for borrowers

The deadline for repaying Covid-19 business loans is approaching. The small business cash-flow loan scheme, launched in May 2020, provided loans to over 129,000 businesses, totaling $2.4 billion. Borrowers had five years to repay, with no payments due for the first two years. Many will reach the repayment deadline starting in June, facing a 3 percent interest rate and potential default interest of 10.88 percent. Currently, $953 million remains unpaid, with 10,000 loans in default. Many borrowers, especially sole traders, report difficulties in repaying loans amid rising inflation.