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The scheme, announced by Prime Minister Anthony Albanese earlier this month, will provide certain businesses with zero-interest loans for up to two years to help manage rising fuel and input costs.
Administered through the National Reconstruction Fund Corporation (NRFC), loans of up to $5 million will be available to eligible SMEs in fuel, fertiliser, plastics, and other critical supply chain sectors.
Applications are currently being processed exclusively through a small group of participating banks, with no pathway for non-bank lenders.
Moneytech CEO Nick McGrath said that while he backed the program, its reach could be meaningfully extended by opening it up to non-bank lenders.
“This is a well-designed program tackling a real problem, and the Government deserves credit for acting quickly,” McGrath said.
“Our question is a constructive one though, if the objective is to get capital into the hands of as many eligible Australian SMEs as possible, as quickly as possible, why limit delivery to the major banks?”
According to Agile Market Intelligence’s latest Broker Pulse on commercial lending, which tracked broker usage of lenders throughout February 2026, the major banks were the most used lenders in the business lending sector.
Twenty-three per cent of brokers used National Australia Bank and Australia and New Zealand Banking Group, while 14 per cent used Westpac and 13 per cent used Commonwealth Bank.
The non-bank sector was also well used, with Prospa used by 12 per cent of respondents, Shift by 11 per cent, and Dynamoney by 10 per cent.
‘The logic hasn’t changed’
McGrath noted that during the pandemic, non-bank lenders, including Moneytech, were accredited to deliver loans under the government’s SME Guarantee Scheme, alongside the major banks.
“The SME Guarantee Scheme worked because the Government recognised that a diverse group of lenders would reach a broader group of businesses. That logic hasn’t changed. If anything, the role non-banks play has grown significantly since then,” McGrath said.
“Non-bank lenders are now a core part of how Australian SMEs access finance. The Reserve Bank of Australia itself has noted that the non-bank share of SME lending has grown strongly since 2022, particularly for smaller loans driven by demand from SMEs for faster decisions, more flexible criteria and funding options the majors don’t offer.
“Many of the businesses this program is designed to help already rely on non-bank lenders for their day-to-day finance.”
Role of the broker
McGrath also highlighted the importance of brokers in the delivery of the program, noting they are the primary distribution channel for SME funding across Australia.
Broker Daily has recently reported that current economic conditions are prompting brokers to adapt their advice, while also creating an opportunity to build closer, longer-term relationships with SME clients.
While brokers were involved in the COVID-19-era SME Guarantee Scheme, the role of the third-party channel in the current program remains unclear.
“Brokers are often the first call a business owner makes when conditions tighten,” McGrath added.
“They understand their clients’ operations and can quickly determine whether a business is best supported by a bank, a non-bank lender, or a combination of both.
“Any program designed to move capital fast should be built around the channels SMEs actually use and brokers are central to that.”
[Related: AI uptake surges among SMEs]
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