Landlords With Loans Up To $10M Given Six-Month Payment Relief If They Let Tenants Stay
Australian banks are expanding their business support package to all businesses with loans of up to $10 million from Monday.
This means Australian businesses will now be covered and eligible to have their loan repayments deferred for six months in a bid to relieve the pressures associated with Covid-19.
Additionally, commercial landlords with loans of up to $10 million will be eligible for six months worth of repayment relief, on the premise they do not terminate the lease or evict any tenant who fails to pay rent due to any financial hardship caused by the coronavirus outbreak.
Anna Bligh, CEO of the Australian Banking Association and former Premier of Queensland, said Australian banks want to back Aussie business and jobs.
"A week ago, banks announced they would provide six-month loan repayment deferrals for small businesses, up to loans of $3 million. Today, Australian banks will expand their business support package to all businesses with loans of up to $10 million," she said.
She confirmed 98 per cent of all Australian businesses who have a loan with an Australian bank will also now be covered and eligible to have their repayments deferred for six months.
"This will take the weight off the shoulders of those businesses who employ almost 1.5 million Australians," Blight said.
"This [also] takes a huge burden and worry off the minds of those small businesses who are worried about their rent."
Bligh said if landlords do the right thing by their tenants, banks will do the right thing by them, before highlighting nobody knows how long this crisis will last but that it will impact every part of the Australian economy.
On Sunday night Scott Morrison announced states and territories had agreed to put a moratorium on rental evictions for the next six months, as unemployment spikes and hundreds of thousands of people turn to welfare.
"Commercial tenants, landlords and financial institutions are encouraged to sit down together to find a way through to ensure that businesses can survive and be there on the other side," Morrison said in a statement following the press conference.
This could include tenants and landlords being encouraged to come to agreement "on rent relief or temporary amendments to the lease", reduction or waiver of rental payments, and giving tenants an ability to terminate leases on the grounds of financial distress.
Commonwealth Bank, WestPac and ANZ have each released a statement saying they support the new measures.