It has been developed as part of the Government's existing Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme, which provides loans to Australian businesses affected by COVID-19.
The loans will be delivered through banks and supported by terms and conditions tailored to the arts and entertainment sector.
Loans will be provided to companies for activities that generate jobs—including through the synergy between arts and entertainment on the one hand, and travel, tourism and hospitality on the other. Loans will also increase arts access in outer metropolitan, regional and remote areas.
Lenders will provide facilities that only have to be drawn down if needed. Loan terms will be up to five years, with an initial 12-month repayment deferral. The Commonwealth will guarantee 100 per cent of loan amounts. The guidelines for the loan scheme will be released in the coming weeks.