Up to $3M is available from Forest Industries Innovation Fund to undertake projects that support innovation and the exploration of new markets for forest products.
Forest Industries Innovation Fund Loan Scheme
Forest Industries Innovation Fund provides long-term, low-interest loans to forestry industry businesses to support projects which:
- improve the profitability of the NSW timber industry and drive employment growth
- drive new investment and innovation to enhance the NSW forestry industry
- position the NSW forest industry to adjust and capitalise on new opportunities
The NSW Government has allocated $34 million for a concessional loan scheme, the Forest Industries Innovation Fund Loan scheme, which will assist industry to adopt new technology and innovative practices to better address the changing demands of the future forest industry. The fund is part of the NSW Government’s Forestry Industry Roadmap.
Loans of up to 100% of the net, GST exclusive cost of the works to a maximum of $3 million per project are available. Loans are offered at a fixed rate of 2.5% over a maximum period of 20 years.
The Scheme will be administered by the NSW Rural Assistance Authority (RAA) under guidelines developed by the Department of Primary Industries (DPI) – Forestry.
All projects funded through the Scheme must contribute to improving economic growth and productivity in the Forestry and Forest Products Industry, and have a positive impact on regional economies.
Applications will be favourably considered which:
- Demonstrate collaborative / partnership arrangements and demonstrate industry-wide applicability and benefits
- Have high dollar-for-dollar commitment from the loan applicant or a consortium.
To be eligible, the applicant must own or manage a business involved in:
- Plantation and/or native forest operations; or
- Forest product processor / milling operations; or
- Silvicultural or forest harvest / haulage contracting; or
- Production or development of forestry industry inputs or outputs, including market development.
The applicant must satisfy each of the following:
- Demonstrate that their business has long-term viability and the capacity to meet loan repayments when due.
- Provide security for the low interest loan acceptable to the RAA.
- Have an Australian Business Number (ABN).
- Only one project per business applicant (ABN, Australian Company Number (ACN)) will be allowed per year, with a maximum of two projects
allowable over the life of the program.
- Be willing to undertake periodic reporting requirements or undergo periodic site visits and auditing to evaluate whether the funded project has
achieved its objectives.
- The lead proponent in an application may not be a State Owned Corporation or a government agency.
Applications close 13 September 2019.