There has been an important announcement just released in regards to Covid-19 Jobs Support Loans. This is a first in best dressed offer by the Government, so it is important to call our office if you are interested in applying for this loan and speak to us to get your Financial Information ready to submit your application.
2.1 Concessional loans are available up to 50 per cent of an eligible entity’s annual wage expense, to a maximum of $250,000.
• The annual wage expense is the average of an entity’s wage expense including superannuation over the 2017/18 and 2018/19 financial years and may include the salaries, or drawings of business owners, if they work in the business.
How loans may be used
3.1 Concessional Loans may be used to meet an entity’s working capital expenses. Examples of eligible expenses include:
a) paying employee wages;
b) paying creditors and existing business loan and equipment finance payments;
c) paying rent and rates;
d) buying goods, including fuel, for the purposes of carrying on the business.
3.2 Ineligible expenses include:
a) refinancing existing business loans or equipment finance;
b) purchasing new equipment or other assets.
4.1 To be eligible for a concessional loan applicants must:
a) be an eligible business which holds an ABN and is registered for GST, or an incorporated non-profit organisation;
b) have one or more equivalent full-time employees in Queensland;
c) have operated the business or non-profit organisation since 1 July 2017;
d) have suffered a loss of income as a result of COVID-19.
5.1 Loans up to $100,000 will require no loan security.
5.2 Loans over $100,000 and up to $250,000 are to be secured by a General Security Agreement.
• A General Security Agreement is a general charge over the business assets of an entity.
Loan terms and interest rates
6.1 The term of concessional loans is 10 years.
6.2 The first year of the loan will be repayment free and no interest will be charged.
6.3 Following the first year, payments will be interest-only for two years.
6.4 After this, principal and interest repayments will apply for the remaining term.
6.5 Loan payments when they commence will be on a monthly basis.
6.6 An interest rate of 2.5 per cent will apply to the loan from commencement of the second year and for the remainder of the loan term.
To complete this application, you will require the following information ready for upload:
FAQ in regards to this support loan
COVID-19 Business Support page to apply