New Accessible Debt Products for Fast Growth SMEs – Jobs for NSW

BSI Admin

After an initial pilot program in 2016, Jobs for NSW has launched a revised loan portfolio for scale-ups, to fill the gap in the market where banks won’t lend

The NSW Government – via Jobs for NSW – will now lend to scaling companies with only a year of trading history on the basis that they are able to provide evidence of future growth through contracts, purchase orders or similar secured pipeline.

The revised loan products announced by Jobs for NSW are:

Regional Growth Loans
Regional Growth Loans are interest free loans of $200,000 – $500,000 for companies creating 10 full-time equivalent (FTE) jobs in regional NSW over 2 years.

Accelerating Growth Loans
Interest bearing loans of $200,000 – $500,000 for companies creating 10 FTE in metro NSW over 2 years. Jobs for NSW have introduced multiple draw-downs and interest only periods to Accelerating Growth Loans to reduce the pressure on early stage companies.

Strategic Growth Loans
Interest bearing loans from $500,000 – $1,200,000 for companies creating 20 jobs over 3 years. Strategic Growth Loans also allows for multiple draw-downs and interest only periods.

Jobs for NSW aims to use these loan products to open up access to sizable working capital and to encourage a culture of entrepreneurship. These loans are highly attractive as there require security over the assets of the business rather than personal assets or directors guarantee.

Loan Guarantees are also available for fast-growth SMEs with demonstrated revenue of $3 million or more to enable bank finance for business expansion needed for job creation and growth. Jobs for NSW will act as a Guarantor for up to 50% of the loan (up to $5 million of the loan amount), for businesses who are unable to access the full quantum needed to enable business expansion.

If you would like more information, or assistance with preparing an application for your business, contact us at info@bsi.com.au or call us on (02) 9126 9100.