COVID-19 Jobs Support Loans – False hope or harsh reality?
AUTHOR: Michael Brennan
Further details are now available with applications opening for The Queensland Government’s $500 million COVID-19 Jobs Support Loan scheme.
The loan can be utilised for working capital. The examples provided include:
- paying employee wages;
- paying creditors and existing business loan and equipment finance payments;
- paying rent and rates; or
- buying goods, including fuel, for the purposes of carrying on the business
While great on the face of it, businesses need to be very aware, that the devil is in the detail. Applicants must also:
- 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; and
- intend to use any surplus liquid reserves or normal credit sources up to normal credit limits, in conjunction with the loan to continue operations.
Loans will be unsecured for amounts under $100,000 and secured by a General Security Agreement for amounts over $100,000.
In order to apply applicants, need to have following information:
- Business Financial Statements for 2017-18 and 2018-19
- Personal Taxation Returns for 2017-18 and 2018-19
- Bank Account Information
- Australian Tax Office (ATO) Integrated Client Account Statement
- Aged list of debtors and creditors at time of application
- Applicant Identification
- Organisation Constitution or Rules of Association and Certificate of Incorporation (if applying as a non-profit organisation)
- Trust Deed (if applying as a trust).
The key issue is going to be how QRIDA determines how a business is considered viable under normal business conditions. Offermans have contacted QRIDA to clarify this vital detail and will update you once we have their position.