Kerre Woodham: The Covid loans are proof high trust models don't work

Chris Small from ABC Business Sales summed up the business loan scheme beautifully on the Mike Hosking Breakfast this morning: it was a balls up that was going to, has indeed, and will continue to cost the country hundreds of millions of dollars.

Let me take you back to March 2020. Business loans were made available in May – the announcement was made in March for small businesses affected by Covid-19. Businesses were offered up to $20,000, plus $1800 per full time employee. More than 129,000 businesses took out loans worth $2.4 billion. Borrowers had five years to repay the loan, and many would reach that limit from June.