Up to $1.5 M is available from AgriGrowth Loan Scheme to help farms and agri-businesses with low interest loans to develop the agricultural sector.
AgriGrowth Loan Scheme
The AgriGrowth Loan Scheme is an initiative of the Tasmanian Government providing low interest loans to Tasmanian farm businesses and agri-food businesses. It will support projects that advance the government’s Agrivision 2050 plan which aims to increase the value of the agriculture and agri-food sectors in Tasmania.
The AgriGrowth Loan Scheme will provide financial assistance to Tasmanian farm businesses and agri-food business, where the majority of business is conducted in Tasmania, for projects that advance the government’s agri-growth agenda. Eligible purposes include:
- Developing an innovative agribusiness initiative that has a long lead time until income is generated.
- Starting a new enterprise or expanding an existing enterprise or
- Implementing Productivity or Value Enhancement Activities,
- that otherwise could not be brought forward and/or financed under normal banking arrangements.
Examples could include:
- Assisting new entrants to the industry, or farm conversions, either in full or part.
- Business improvements, expansions and Productivity and Value Enhancement Activities.
- Replanting orchards or vineyards to update varieties.
- Diversification of business income streams and/or products.
- Projects that enhance the market value of primary production.
The Loan scheme will provide loans ranging from $100 000 to $1.5 million to fund projects that otherwise could not be brought forward and/or financed under normal banking arrangements.
Generally loan amounts of less than $100 000 will not be considered under the scheme.
To be eligible for an AgriGrowth Loan, you must be a Tasmanian Farm Business or an Agri-food Business.
A Farm Business is defined as being involved in agriculture, horticulture, pastoral, apiculture, or aquaculture industries and may also be for the purpose of activities related to agri-tourism.
An Agri-food Business is classified as those businesses that transform, package or otherwise value-add to primary products that are marketable for human consumption. They are generally limited to businesses that employ 35 or fewer full time equivalents and have an annual turnover of $5 million or less.
All applicants must:
- Operate as a sole trader, trust, partnership or private company;
- Demonstrate a clear need for the loan, to the satisfaction of the Department of State Growth, and projects must advance the Government’s agri-growth agenda/policy;
- Include a minimum three year business plan to the satisfaction of the department (in some cases the department may request that the applicant use a recognised consultant to assist with the plan);
- Demonstrate ongoing financial viability with the loan application and business plan showing that the venture will be profitable within the agreed loan period; and
- The business must be registered for tax purposes in Australia with an Australian Business Number (ABN) and be registered for GST.
- With regard to a Farm Business at least one member of the Farm Business must be a farmer who, under normal circumstances, generally contributes at least 50 per cent of his or her labour and will generally derive at least 50 per cent of his or her income from the Farm Business within the loan term.
Applications close 30 September 2018.