The 500 million Australian dollars (321.8 million U.S. dollars) COVID-19 Export Capital Facility, which was announced on Wednesday, will allow export businesses, including those in the tourism industry, that have lost access to markets because of the pandemic to apply for government loans.
The loans will range in value from 250,000 Australian dollars (160,925 U.S. dollars) to 50 million Australian dollars (32.1 million U.S. dollars).
"These are tough times for many trade-exposed businesses who have been some of the hardest hit by the COVID-19 crisis," said Simon Birmingham, the Minister for Trade, Tourism and Investment.
"We are currently in a difficult credit environment and these loans will provide a lifeline to Australian exporters to help them maintain their operations," he said.
"Rising export costs, disruptions to supply chains and loss of markets are some of the factors that are making it difficult for exporters to access vital commercial finance."
"This critical financial assistance will help exporters to get back on their feet through helping to re-establish markets, or provide working capital support or help exporters purchase new equipment to expand their operations."
According to the Australian Bureau of Statistics (ABS), export of rural goods declined 7 percent in February.
The figures for March, when the virus hit Australia hardest, are expected to be significantly worse.
Dianne Tipping, the chair of the Export Council of Australia, said that the scheme would go a long way to repairing the damage done to export businesses "without starting from scratch all over again."
"The fact we can do this in Australia - provide some funding to enable exporters to keep going - means we can perhaps be the first ones back into the China marketplace. A lot of other countries don't have the ability to do that at the moment," she said.
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