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Department of State Growth

Business Improvement Concessional Loans

Business Improvement Concessional Loans are an initiative of the Australian Government to assist eligible commercially viable farm businesses to continue to operate after exhausting their Farm Household Allowance entitlements.

The loans will be delivered as part of the Farm Business Concessional Loan Scheme. Under the scheme the Australian Government has provided Tasmania with a total of $10 million for the provision of Dairy Recovery Concessional Loans, Drought Assistance Concessional Loans and Business Improvement Concessional Loans.

Loans up to a maximum value of $1 million are available. The Department of State Growth/Tasmania Development and Resources will assess and decide if applications are eligible through a non‑competitive first-come first-served selection process.

Key features of the Business Improvement Concessional Loans

  • Business Improvement Concessional Loans are for eligible Farm Household Allowance (FHA) recipients who are recovering from financial hardship and who have exhausted, or will exhaust, by 30 June 2018, their FHA 1,095-day income support entitlement.
  • Loan amounts are up to a maximum of $1 million in total.
  • A concessional variable interest rate commencing at 2.47 per cent (as at 1 February 2017), which is reviewed on a six monthly basis.
  • A maximum loan term of 10 years, with interest only repayments for the first five years and principal and interest repayments for years six to 10.
  • The Farm Business must repay or refinance the remaining loan balance at the end of the loan term.
  • The availability of loans is subject to funds being available—applications close on the closing date of the Application Period (as published on the Department of State Growth website) or when funding is fully committed, whichever occurs first.

Eligibility

To be eligible for a Business Improvement Concessional Loan an applicant must demonstrate that they meet the Business Improvement Concessional Loan eligibility criteria. 

Detailed information about the eligibility and assessment criteria is available in the Business Improvement Concessional Loans Scheme Guidelines.

Guidelines and Application Form

Application Period

Applications for Business Improvement Concessional Loans opened on 31 July 2017 and may remain open until 30 June 2018 or until funding is fully committed, whichever occurs first.

Details of any revisions to the scheme over this period will be published on the Department of State Growth’s website, www.stategrowth.tas.gov.au/business improvement

How to apply

To ensure your application has addressed all the requirements applicants are encouraged to contact one of the Department of State Growth’s program managers through Business Tasmania on 1800 440 026 (free call) prior to submission.

Eligible applicants should lodge their completed application form including all required supporting documents no later than the closing date of the application period, 30 June 2018.

Applications lodged after the advertised application period closing date will not be accepted.

Applications may be submitted via post or email.

Postal address:
Senior Program Manager
Business Improvement Concessional Loans
Department of State Growth
GPO Box 536
Hobart TAS 7001

Email:
businessfinance@stategrowth.tas.gov.au