The federal government is being urged to consider a HECS-like loan program for business doing it tough due to the COVID lockdown.

The system would only involve repayments once revenue returns.

Australian National University’s Professor Bruce Chapman says the scheme would not be a huge cost to the government.

“If it is designed properly, and you get the money there is no subsidies involved,” said Professor Chapman.

“You put a small rate of interest on it, but the critical point is that the business is able to pay back the money, and you only give it to businesses that are well established.”