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The move doubles the previous limit, aiming to improve opportunities, rates, and loan terms for small businesses.
According to Prospa, the expanded Business Loan Plus now offers terms of up to five years with more competitive pricing, up to 100 per cent LVR, and maximum valuations of $4 million in metro areas and $2 million in regional locations.
Prospa said the changes will help SMEs access larger funding options to scale their business using residential property as security.
“Brokers are at the heart of Australia’s small business lending scene. These updates enable brokers to offer even better value to their clients, helping them access larger funds, secure more competitive rates, and maximise the value of their property assets,” said Roberto Sanz, general manager of sales & partnerships.
“We’re proud to support our broker partners as they help Australian businesses grow and thrive.”
The expansion comes at a critical time, with research indicating 66 per cent of small businesses are experiencing cash flow stress. Prospa expects 30 per cent of SMEs will require additional funding before May 2026.
It comes just months after Prospa released its SME Sentiment Report, which found that another 13 per cent said they have no cash reserves at all.
Over three-quarters (77 per cent) of respondents said rising costs and a tough economy have impacted them personally.
This has resulted in 43 per cent suffering from stress and burnout, while a further 39 per cent reported it impacting sleep.
There are a variety of methods respondents are utilising to combat the strain. Eighty-three per cent are implementing some changes, with 46 per cent cutting non-essential expenses and 37 per cent raising prices.
While proactive steps are being taken to reduce costs, many are overlooking the benefits of technology.
Just 21 per cent of respondents said they are planning to invest in technology, despite 60 per cent recognising AI as being crucial to their business.
The top uses for AI were reducing admin time (33 per cent) and planning for growth (23 per cent).
“Technology is no longer a luxury – it’s a necessity. AI is helping small businesses do more with less, freeing up time and resources to focus on growth. But adoption, particularly if you are competing with larger or global businesses, needs to be higher,” said Prospa’s co-founder and chief revenue officer, Beau Bertoli.