UPDATE: Another day, another stimulus package!

*APPLICATIONS OPEN NOW*

The Queensland Government has released further information in regards to the $500 million loan scheme previously reported (details in this post).

liftoff

Anastasia has been working hard and applications are now open! Its a helluva lot of money and could mean the difference between your business riding the wave or not, so lets get into the important stuff.

The measure is aimed at supporting Queensland businesses impacted by COVID-19 to retain employees and maintain their operations (Woohoo!).

The loans of up to $250,000 are being capped at 50% of your businesses annual wage expense (including superannuation). This is the average of your wage expenses from the 2018 and 2019 financial years. A director’s drawings amount can also be taken into consideration if they’re actively involved in the business.

The loan term is 10 years, with the first year being a complete interest & repayment free zone. Interest only repayments are required from year 2, with principal & interest repayments required from year 3 onwards. The interest rate is fixed at 2.5% - i repeat, 2.5%. This is a once in a lifetime opportunity from the government!

There is also good news for business owners that don’t employ staff – you may still be eligible! On this basis, the business owners must work in the business for at 35 hours per week (pfft, on a good week…).

Other important aspects:

  • The loans are available to meet working capital needs of the business (paying wages, creditors, rent, stock etc.). They cannot be used to refinance existing business loans or purchase equipment or other assets

  • Loans of up to $100,000 don’t require security. Loans over $100,000 require a General Security Agreement (GSA) over the business assets of the entity

  • Loan repayments are monthly

  • Loans may be repaid early (no fees)

  • Loan applications close 25 September 2020 or until funding is fully committed

To apply, the following information is required:

  • Business financials for the 2018 and 2019 financial years

  • Personal tax returns for the 2018 and 2019 financial years

  • Bank account balances for all business loan and credit accounts (this may be copies of your most recent bank statements or obtained from your internet banking platform)

  • Australian Tax Office Integrated Client Account Statement

  • Aged list of debtors and creditors at time of application

  • Company Constitution

  • Trust Deed (if applying as a trust)

  • Identification documents

How to Apply

Click the below link to apply:

APPLY NOW

Stay safe. Shake tax, not hands!

Get in touch with m+h Private tax specialists today on +61 3036 7174 if you need support for you and your business.

As always, the above is general in nature, please discuss with your trusted advisor.

James Hoeft