What is the Business Growth Loan Scheme?
The Business Growth Loan Scheme is a program that provides businesses with concessional loans to help them develop and transition to sustainable post-COVID-19 operating models.
The Tasmanian Government recognises that the private sector is critical to rebuilding and growing our economy and remains committed to assisting Tasmanian businesses to develop and transition to sustainable post-COVID operating models.
The $60 million Business Growth Loan Scheme will provide concessional loan funding to support:
- The State’s businesses to recover, adapt, grow and develop enhanced business models that support employment retention and business growth, and
- New projects that contribute towards employment and growth of the Tasmanian economy.
The scheme recognises the importance of the visitor economy to Tasmania and will particularly assist businesses in this sector to improve tourism offerings within Tasmania, to build business resilience and capacity to adapt to a significantly disrupted and uncertain business environment.
The minimum loan amount is $20 000 and the maximum loan amount is $3 million.
Loans above $100 000 will generally require an up-to-date, suitably detailed business plan that addresses loan scheme eligibility, clearly addresses the need for assistance, and provides a financial model that demonstrates financial viability and capacity to repay.
Loan funds will be available for businesses:
- To assist them to recover, adapt, grow and develop enhanced business models that support employment retention and business growth.
- For new projects that contribute towards employment and growth of the Tasmanian economy.
To be eligible, the business must:
- hold an active Australian business number (ABN) and be registered for goods and services tax (GST)
- be located in Tasmania and support Tasmanian employment
- generally, have a turnover of less than $10 million across the last 2 financial years, or in the case of a new project, have a projected average turnover of less than $10 million in the first 2 years of operation
- demonstrate a history of profitability pre-COVID-19 and/or have a sustainable pathway to recovery, or for new businesses or projects, be able to demonstrate sound prospects for the new venture
- confirm that statutory payments (e.g GST, PAYG-witholding, PAYG-instalments, payroll tax etc) were up to date pre-COVID-19
Applications close 14 September 2021.