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Loan Guarantee Scheme
The Tasmanian Government has established a Pilot Loan Guarantee Scheme of $500 000 to assist small to medium size enterprises located in the North West and Western regions of Tasmania (as defined by the 64 phone prefix) to access main stream finance providers to fund business expansion.
Key features of the loan guarantee scheme
- Guarantees between $30 000 and $50 000 for eligible Tasmanian owned businesses.
- Representing up to 20 per cent of a new bank loan provided for the purpose of:
- Purchase of freehold property
- Purchase of plant and equipment.
- Guarantees to support working capital loans and refinancing of existing borrowings are ineligible under this scheme.
- The maximum term of the guarantee will be five years. Guarantee amount will reduce in line with reductions in underlying loan principal.
- Guarantees cannot be extended once expired.
To be eligible for a loan guarantee an applicant must demonstrate that it meets the Loan Guarantee Scheme eligibility criteria.
Detailed information about the eligibility and assessment criteria is available in the scheme guidelines.
Applications for the Scheme will open in 18 January 2017 and may remain open until 31 October 2017. As this is a pilot scheme the continued availability and operation of the scheme may is subject to review.
Once the total guarantee amount of $500 000 for the scheme has been allocated no further guarantees will be issued under the scheme and it will close. Should the scheme be withdrawn prior to November 2017 this will be announced on this State Growth website. www.stategrowth.tas.gov.au/loans‑guarantee
How to apply
Those wishing to apply should first contact one of the Department of State Growth’s finance managers through Business Tasmania on 1800 440 026.
An application form will be provided once eligibility has been confirmed.
Eligible applicants should lodge their completed application form including the required documentation by post to:
Senior Program Manager
Loan Guarantee Scheme
Department of State Growth
GPO Box 536 Hobart TAS 7001
Applications lodged after the advertised application period closing date will not be accepted.