Queensland COVID-19 Jobs Support Loans

The Queensland Government has available concessional loans of up to $250,000 to assist small business with surviving the impact of the Coronavirus.

They are very attractive and we suggest everyone consider them as a tool to help manage their cash flow in this difficult and crazy time.

You can find out the full details on the QRIDA website: qrida.qld.gov.au or just google it.

In summary:

• Concessional loans are available up to 50% of an eligible entity’s annual wage expense to a maximum of $250,000. This includes superannuation and may include the salaries or drawings of business owners if they work in the business. So don’t assume you are not entitled to the loan just because you don’t have employees!
• The loans may be used to meet your working capital expenses. i.e. to carry on.
• They are not to be used for refinancing existing loans or for buying equipment.
• To be eligible, your business must:
  • have an ABN and be registered for GST;
  • have one or more full time employees in Queensland (your business can be based in another state);
  • Have operated the business 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 business 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 term of the loans is 10 years;
• The first year will be repayment free and no interest will be charged;
• Following the first year, payments will be interest only for two years;
• After this, principal and interest repayments will apply for the remaining term on a monthly basis,
• An interest rate of 2.5% will apply from the commencement of the second year and for the remainder of the loan term.

You can apply online up until 25 September 2020 or until the $500 million available runs out.

Importantly don’t assume you are ineligible.  As always, give us a call on 07 4963 4800 if you wish to discuss.

Source: Queensland COVID-19 Jobs Support Loans : QRIDA (2020). Available at: http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme