The Value Add
Qld Government Jobs Support Loans
The Queensland state government has released details of their Jobs Support Loans for Queensland businesses and non-profit organisations financially affected by COVID-19 to retain employees and maintain their operations.
Eligible businesses include:
- sole traders
- private and public companies; and
Those entities must:
- be a business which holds an ABN and is registered for GST, or an incorporated non-profit organisation
- have one or more equivalent full-time employees in Queensland (working more than 35 hours per week);
- have operated the business or non-profit organisation since 1 July 2017;
- have suffered a loss of income as a result of COVID-19
- 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
The loan scheme has the following features:
- is a total of $500 million
- loan of up to 50% of entity’s annual wage expense, to a maximum loan of $250,000
- No repayments or interest charged for the first year
- Two years interest only
- 2.5% fixed interest rate
- 10 year loan term
The annual wage expense is the average of an entity’s wage expense including superannuation over the 2017/2018 and 2018/2019 financial years, and includes the salaries or drawings of a business owner if they work in the business.
Loan applications are open to 25 September 2020 or when funding is fully committed.
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.
How Can Loans Be Used?
Loans can be used to meet an entity’s working capital expenses, for example:
- paying employee wages
- paying creditors and existing business loan and equipment finance payments;
- paying rent and rates;
- buying good, including fuel, for hte purposes of carrying on the business.
Ineligible expenses include:
- refinancing existing business loans or equipment finance
- purchasing new equipment or other assets
An annual review of your loan may be required and you will need to provide the necessary financial information.
Successful applicants will be required to consent to subsequent audits to confirm that loan funds have been expended on approved purposes.
Getting ready to apply
To make applying online for the loan easier, you will need to have the following documents before you apply:
- Business Financial Statements for 2017/2018 and 2018/2019
- Personal tax returns for 2017/2018 and 2018/2019
- Bank account information
- ATO Integrated Client Account Statement
- Aged list of debtors and creditors at time of application
- Applicant identification information
You can apply online here: https://applyonline.qrida.qld.gov.au/login
Further guidelines are available here: http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme/frequently-asked-questions-covid-19-jobs-support-loans