Overnight, the Queensland Rural and Industry Development Authority (“QRIDA”) released their long-awaited guidelines for the previously announced “COVID-19 Jobs Support Loans”, to be made available to Queensland businesses to assist them meet ongoing costs such as wages, creditors, loan payments, rent and other business expenses etc.
We are well aware that some of our clients are currently shuttered due either to Government decree, or a lack of custom. We are told by QRIDA that such clients remain eligible to apply as long as they intend to “continue operations after receiving the loan”, whenever that might be.
At a glance:
- The total loan scheme is $500,000,000,
- The maximum loan that can be applied for is $250,000, and they have a ten year term,
- The amount of the loan is determined by reference to 50% of the average of the applicants “annual wage expense” (including superannuation) over the 2018 and 2019 years. Owners salaries and drawings are also included in the “annual wage expense”,
- The loans are repayment free and interest free in year one,
- In years two and three, the loans are interest only, at a fixed rate of 2.50%,
- In years four to ten, the loans are repaid on a principal and interest basis, and
- Loans up to $100,000 are unsecured, but loans over $100,000 up to the maximum of $250,000 will require a charge to be taken over the business assets of the applicant entity.