Australia’s Small Business Ombudswoman Calls for HECS-Like Loan
Australia’s small business ombudswoman Kate Carnell is urging the federal government to introduce a revenue-contingent loan scheme for small businesses to provide them with much-needed cash flow during the “perfect storm” induced by the CCP (Chinese Communist Party) virus, commonly known as novel coronavirus.
The renewed call comes amid growing concerns over the imminent end of the JobKeeper subsidy and other support measures to small businesses, many of which are still struggling to recover from the economic fallout of the COVID-19 crisis.
The proposed program mirrors the Higher Education Contribution Scheme (known as HECS) launched 30 years ago as the world’s first income-contingent loan, which allowed students to enrol in university without paying up-front tuition, and instead repaying their fees once their earnings reached a certain level.
The Small Business Ombudsman says a proposal to offer HECS-style loans to struggling small businesses after JobKeeper ends will be presented to the government.