Funding. All you need to know.
Farm Finance Concessional Loans Scheme (Tasmania)
The Australian Government will provide $15 million per year (a total of $30 million over two years from 2013-14) for the provision of Concessional Loans to eligible farm businesses in Tasmania for productivity enhancement or debt restructuring purposes.
In Tasmania, the Concessional Loans Scheme will assist farm businesses experiencing debt servicing difficulties but considered potentially viable in the longer term.
Key features of the Concessional Loans Scheme
- Loans of up to $650 000 for eligible farm businesses for productivity enhancement activities or to restructure existing farm business debt.
- Maximum loan term of up to five years.
- Concessional Loan amounts will be no more than 50 per cent of the total eligible debt of the farm business for debt restructuring loans
- Variable concessional interest rate initially set at 4.5 per cent per annum.
- Interest-only payments are available for up to five years.
- Full repayment of loans required at the end of the loan term.
- The availability of loans is subject to funds being available. The scheme is capped at $15 million per year for 2013-14 and 2014-15 (total of $30 million). There will initially be $5 million available for Productivity Enhancement Loans and $10 million available for Debt Restructuring Loans in 2013-14. No more loans will be offered once this cap has been reached.
- Funds may be reallocated between Productivitiy Enhancement Concessional Loans and Debt Restructuring Concessional Loans within an application period subject to a review by the Department of Economic Development, Tourism and the Arts, on behalf of Tasmania Development and Resources, on the number of applications received for each loan type.
To be eligible for a Concessional Loan, you must:
- meet the eligibility criteria to be assessed for a Concessional Loan
- meet the criteria for eligible debt
- meet the Concessional Loan assessment criteria
- the required supporting documentation including confirmation from your current commercial lender(s) of ongoing support if a Concessional Loan is approved
- evidence of satisfactory security for the loan.
Eligibility and assessment criteria are detailed in the Concessional Loans Scheme guidelines for Tasmania.
Funds for Concessional Loans will be allocated in a single period for each loan type for each year in 2013-14 and 2014-15. Details of each application period including the opening date, the closing date and any revisions to funds available during each period will be determined and announced and published ahead of time on the Department of Economic Development, Tourism and the Arts website www.development.tas.gov.au
Application forms and guidelines
Application period for 2013-14
The application period for 2013-14 will be open on 13 January 2014 and close on 14 March 2014.
Applications submitted by email or post must be received by 5pm on the application period closing date.
Frequently asked questions
- Concessional Loan Scheme (Tasmania) – Frequently Asked Questions
Are you considering applying for the Farm Finance Concessional Loan Scheme (Tasmania) and do not know where to start? The Farmer Liaison Officers are available to help you.
- In a special initiative for Tasmania, to further assist Tasmanian farmers, a Farmer Liaison Officer program will be provided and delivered through the Tasmanian Farmers and Graziers Association.
- Farmers can obtain more information on eligibility criteria and the application process by calling the TFGA on Freecall 1800 154 111 (within Tasmania) plus www.tfga.com.au
Rural Financial Counselling Service Tasmania
- Rural Financial Counsellors are available to assist farm businesses that are suffering financial hardship and need assistance completing forms and business plans. Farmers can call the service on 1300 883 276.
How to apply
Eligible applicants should lodge a completed application form including required documentation to DEDTA at:
Senior Program Manager
Department of Economic Development, Tourism and the Arts
GPO Box 646
Hobart TAS 7001
For further information contact Business Tasmania on 1800 440 026 or email email@example.com