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 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.
Key features of the AgriGrowth Loan Scheme
- Loans of up to $1.5 million for eligible farm business and agri-food businesses operating in Tasmania for projects that advance the Agrivision 2050 plan.
- Generally loan amounts of less than $100,000 will not be considered under the scheme.
- Loan amounts will be considered up to 80 per cent of a recognised valuation for freehold assets provided for loan security. Other non-freehold assets may also be considered for security.
- The maximum loan term is normally up to five (5) years. Longer terms up to 10 years may be considered in specific circumstances.
- Variable concessional interest rates will apply (in the order of per 3.3 cent per annum as at September 2016) for a maximum of five (5) years.
- Interest only payments are available for a maximum of five (5) years.
- Loans must be repaid in full or fully refinanced at the end of the agreed loan term.
- Principal loan instalments will commence when cash flow is generated.
- Applications will be assessed on the criteria contained within the guidelines.
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.
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.
Eligibility and assessment criteria are detailed in the AgriGrowth Loan scheme guidelines.
- AgriGrowth Loan Scheme – guidelines (PDF)
Applications for the AgriGrowth Loan Scheme opened on the 31 August 2015 for an initial trial period of 12 months. Following a review of the Scheme in August 2016, it has been extended until 30 September 2018, with a further review to be undertaken at that time.
How to apply
Those wishing to apply should first speak to an Agribusiness Finance Manager by calling Business Tasmania on 1800 440 026.
An application form can be provided once eligibility has been confirmed.
Eligible applicants should lodge their completed application form including the required documentation to:
Agribusiness Finance Manager
AgriGrowth Loan Scheme
Department of State Growth
GPO Box 536
Hobart TAS 7001
Applications lodged after the advertised application period closing date will not be accepted.