The Queensland Government has announced that they will be doubling the funding of their COVID-19 Job Support Loan scheme due to overwhelming demand.
The scheme now totals $1 billion with the extra funding available for businesses who have already submitted their application and have not yet been processed – no new applications will be received.
Submitted applications that have already been received, will be assessed in the date order that they have been received complete with all the required information for assessment.
Expected processing times for loan applications received:
Up to 31 March – expect to be processed by mid-May
From 1 April – expect to be processed during May and June depending on the date it was received complete. Applications will be assessed up until the $1 billion funding is fully committed.
Based on the current expected processing times, a QRIDA officer will contact you by phone or email once an application is registered.
Loan features
- Maximum loan up to $250,000
- No repayments or interest charged for the first year
- Plus two years interest only
- 2.5 % fixed interest rate
- 10-year term of loan
- Loans up to $100,000 will require no loan security
- Loans over $100,000 and up to $250,000 are to be secured by a General Security Agreement
- Open now until 25 September 2020 or when funding is fully committed
Eligibility
Concessional loan applicants must:
- be an eligible business which holds an ABN and is registered for GST, (eligible business types include sole traders, partnerships, private and public companies and trusts)
- have one or more equivalent full-time employees in Queensland; (a full-time employee is an employee who works at least 35 hours each week in the entity. Business Owners may be regarded as employees if they work in the business)
- have operated the business or non-profit organisation since 1 July 2017;
- have suffered a loss of income as a result of COVID-19
Applicants must also:
- be considered viable under normal business conditions;
- be able to service the loan under normal business conditions;
- intend to continue operations after receiving the loan;
- intend to use any surplus liquid reserves or normal credit sources up to normal credit limits, in conjunction with the loan to continue operations
How loans may be used
Concessional Loans may be used to meet an entity’s working capital expenses.
Examples of eligible expenses include:
- paying employee wages;
- paying creditors and existing business loan and equipment finance payments;
- paying rent and rates;
- buying goods, including fuel, for the purposes of carrying on the business
Ineligible expenses include:
- refinancing existing business loans or equipment finance;
- purchasing new equipment or other assets
For more information click on the below link to the Queensland Government website:
Please Note: This information is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
