The End of Job Keeper and the Rise of the SME Recovery Loan Scheme

The End of Job Keeper and the Rise of the SME Recovery Loan Scheme

The demise of JobKeeper on 1 April has already seen a number of doors close on businesses, but there is help coming in the form of the SME Recovery Loan Scheme (SMERLS). The SMERLS is designed to help businesses with a turnover of less than $250 million and were recipients of Job Keeper between 4 January and 28 March 2021.

Rodgers Reidy and TBA Solutions are here to help businesses access SMERLS as a part of a business turnaround or restructure.

The Federal Treasury has billed the SMERLS as a mechanism to support economic recovery and provide continued assistance for businesses that received JobKeeper and/or eligible flood-affected businesses. The SMERLS is designed to enhance a lender’s ability to provide cheap credit, giving vital additional funding to businesses to get through the short-term impact of Coronavirus, recover and invest in the future.

Features of the SMERLS include:

  1. The Government guarantee will be for 80% of the loan amount.
  2. Lenders can offer borrowers a repayment holiday of up to 24 months.
  3. Loans can be used for a variety of reasons, including to support investments, refinancing existing debt or to supplement working capital.
  4. Borrowers can access up to a total of $5 million in total.
  5. Loans are for terms of up to 10 years, with an optional repayment holiday period.
  6. Loans can be either unsecured or secured (excluding residential property).
  7. The interest rate on loans will be determined by the lenders, however, they will be capped at around 7.5%.

The scheme is subject to a number of eligibility requirements and a specific application process. For further information in relation to these requirements and other relevant information, please visit

What does this mean for individuals?

Unfortunately, the SMERLS is unlikely to assist businesses in keeping on employees where they were reliant on Job Keeper. Those employees will need to assess their options quickly while they still can do something.

If you find yourself unemployed you should be positive while at the same time seeking advice, advice from professionals that can assist in your re-employment, financial counsellors that can assist in temporary arrangements as you sort yourself out and advice on alternatives should the financial stress become overwhelming, if not before.

At Rodgers Reidy, we have a team of experts that are experienced, empathetic, and well-respected professionals to guide you through your options. You are not alone and this is our field of expertise to assist in all aspects from explaining options through to legally restructuring your financial affairs.

If you or your clients are experiencing financial distress, please contact Rob Naudi (Adelaide) on 08 8470 9010 or contact Brodie Hilet (Melbourne) on 03 9670 8700.



Brodie Hilet

About the author

Brodie Hilet


Meet our Team of Experts

Brodie joined Rodgers Reidy in 2017, following around 7 years at a boutique insolvency firm. Gaining extensive expertise in in both Personal and Corporate insolvency appointments, restructuring and advisory appointments across a wide range of industries.