Article by Stephen Gibson | Accredited Property Law Specialist
Queensland business owners who made application for the Queensland Government’s $500 million COVID-19 Jobs Support Loans scheme, have this week begun to receive loan documentation from the Government’s lawyers.
We have now assisted many clients to work through and understand the loan documents provided for those loans. The COVID-19 Jobs Support Loans we have seen to date typically consist of 80 pages of detailed legal content, spread across about seven distinct legal documents. The loans include many very specific, and potentially onerous, warranties and obligations for borrowers. The loans also involve granting broad ranging charges over all the applicant’s assets.
The Job support loans are low interest loans of up to $250,000 available to sole traders, partnerships, private and public companies, and Trusts to assist them meet their ongoing operational costs during the pandemic period.
Relative to commercially available loans, the loans are on reasonably attractive terms including;
- no repayment for 12 months;
- interest only for 2 years thereafter;
- 2.5% fixed interest rate; and
- a 10-year loan term
The scheme will be open until 25 September 2020, or until the Government’s budgeted $500 million is fully committed. $500 million is a significant investment by the Queensland Government, but with some 438,000 small businesses currently operating in Queensland, it will be interesting to see if that is sufficient to cover businesses registering for loan support. Anyone interested in applying for the scheme, should prioritise their application as funding is capped.
If you require assistance in either making application for a COVID-19 Jobs Support Loan, or advice relating to the COVID-19 Jobs Support Loan documentation, McCarthy Durie Lawyers can help. We are experts in lending and securities with an already established familiarity with the COVID-19 Jobs Support Loans.
We are available to review and provide advice on your COVID-19 Jobs Support Loan on a 2-business day turnaround.
We are 100% remote ready and have the capability to service you remotely despite any isolation or quarantining constraints.
We can do all of this for a competitive fixed fee.
Call me directly.
Stephen Gibson | Director LLB, BBus, Acc. Spec. (Prop) – Qld
Property | Accredited Specialist
DIRECT +61 7 3479 5217
PHONE +61 7 3370 5100