Interest-free business loans

The NSW government is offering an interest-free business loan that allows small- to medium-sized enterprises to benefit from funds that are usually only available to secure businesses needing more capital. As long as your business can demonstrate the amount of revenue and further growth that are prerequisites for a government loan, you are able to apply for this extra capital.

This opportunity is a real boost to newer businesses because they tend to have an unsecured lending history and are often unable to obtain commercial financing. This initiative is put forward by the NSW government, which means only businesses within NSW are eligible.

Not eligible? Compare other business loans now

How does an interest-free business loan work?

An interest-free business loan works the same way as any other business loan. Before you apply for the amount your business needs, figure out whether the loan terms and repayments are something your business can take on. The loan offered by the NSW government has a loan term of four years with varying repayment plans and includes the flexibility of multiple payment advances, which can offer peace of mind.

The loan doesn't require any personal assets to be secured, such as a residential property or a vehicle, but while you're paying off your loan, Jobs for NSW will place security over all general and future assets of the business.

What types of interest-free business loans are available?

The Regional Growth Loan is an interest-free loan that specifically assists businesses creating jobs in regional areas outside Sydney, Newcastle and Wollongong. There is no interest payable on this loan. The minimum amount is $200,000 and the maximum is $500,000. This loan does not need to be secured by personal assets. The loan term for is four years. There are no establishment fees or early repayment penalties charged with this loan.

Alternative business loans from NSW government

If your business is not eligible for the Regional Growth Loan, the NSW government also offers two alternative loan options to consider which are charged interest:

• The Strategic Growth Loan is flexible and offers direct capital to emerging and fast-growing businesses that are scaling quickly. This loan offers a minimum of $500,000 and a maximum of $1,200,000. This is offered over four years with an interest rate of 9.2%.
• The Accelerating Growth Loan is also flexible and for businesses that are growing within the state of NSW. The minimum for this loan is $200,000 and it has a maximum of $500,000. The interest rate for this loan is a fixed 9.2% for the term of the loan, which is four years.

There are no establishment fees with these loans, nor are there any penalties for early repayment.

Is my business eligible for an interest-free business loan?

The eligibility criteria for the Strategic Growth Loan are:

• Have an Australian Business Number (ABN) and be an incorporated company
• Have a minimum of five employees (full-time, part-time or casual)
• Create a minimum of 20 new jobs within the next 3 years in NSW
• Demonstrate a likely revenue of at least $1 million within the next year
• Be trading for at least a year
• Demonstrate further growth for a minimum of one year, shown through future pipelines or contracts
• Be unable to obtain commercial finance

The eligibility criteria for the Accelerating Growth Loan are:

• Have an ABN and be an incorporated company
• Have a minimum of five employees (full-time, part-time or casual)
• Create a minimum of 10 new jobs within the next 2 years in metropolitan NSW (Sydney, Newcastle and Wollongong)
• Demonstrate a likely revenue of at least $500,000 within the next year
• Be trading for at least a year
• Demonstrate further growth for a minimum of one year, shown through future pipelines or contracts
• Be unable to obtain commercial finance

The eligibility criteria for a Regional Growth Loan are:

• Have an ABN and be an incorporated company
• Have a minimum of five employees (full-time, part-time or casual)
• Create a minimum of 10 new jobs within the next 2 years outside of metropolitan NSW (Sydney, Newcastle and Wollongong)
• Demonstrate a likely revenue of at least $500,000 within the next year
• Be trading for at least a year
• Demonstrate further growth for a minimum of one year, shown through future pipelines or contracts
• Demonstrate they have been unable to obtain commercial finance

What do I need to consider before applying?

Once you've read the eligibility criteria, it's important to consider whether or not your business is going to grow and meet the standards that are set by the NSW government. Once you've considered this, it's also important to consider the hiring capabilities of your business, because some of the loan requirements are that you have to add 10 or 20 employees over the next 3 years.

As there are no fees for early repayments or any establishment fees, another thing to consider is the penalties that might be associated with this loan, such as if you make a late payment.

Frequently asked questions

• Am I eligible if I do not have a business within NSW?

  As this initiative is run by the NSW government, only NSW businesses are able to benefit from this. Businesses in other areas can compare alternative options here.

• Can I apply for this loan if I am eligible for commercial finance?

  No, you can't. This loan is only eligible to small- to medium-sized businesses who are unable to obtain commercial finance to help their businesses grow.

• Who do I talk to if I have any questions about these loans?

  You can send an email to enquiries@jobsfornsw.com.au or call 1300 JOB NSW ( 1300 562 679).

• Do I have to talk to a financial adviser before I apply for this loan?

  You are not required to talk to a financial adviser, but it's highly recommended as they will help you assess the suitability of a loan for your business and whether or not the loan you're going after meets your needs.

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Banjo Business Loans		$20,000	$1,000,000	6 months to 3 years	up to 3% for the 36 month loan term		Available for businesses that are at least two years old and has an annual turnover of $500,000.	Go to site More Info	Compare	loading Fetching your data...
Lumi Unsecured Business Loan		$5,000	$300,000	3 months to 3 years	2.5% establishment fee		Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day. Note: Loans settled by 30 June 2022 are eligible for a no repayment period for the first 6 weeks of the loan.	Go to site More Info	Compare	loading Fetching your data...
ebroker Business Loan		$5,000	$5,000,000	1 month to 30 years	$0 application fee		Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.	Enquire now	Compare	loading Fetching your data...
Valiant Finance Business Loan Broker		$5,000	$1,000,000	3 months to 5 years	$0 application fee		A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.	Enquire now	Compare	loading Fetching your data...
Moula Business Loan		$5,000	$250,000	1 to 2 years	2% Establishment fee		A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.	Go to site More Info	Compare	loading Fetching your data...
Max Funding Unsecured Business Loan		$3,000	$30,000	1 month to 1 year	$0 application fee		An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.	Go to site More Info	Compare	loading Fetching your data...
OnDeck Business Loans		$10,000	$250,000	6 months to 2 years	3% of loan amount		Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.	Go to site More Info	Compare	loading Fetching your data...
Heritage Bank Equipment Loan		$20,000	$500,000	Up to 5 years	$450		This business loan is designed to buy new or used equipment and has borrowing amounts between $20,000 and $500,000. No monthly fees and the loan is secured against the assets purchased.	Go to site More Info	Compare	loading Fetching your data...
NAB Business Recovery Loan		$20,000	$5,000,000	Up to 10 years	No approval or administrative fees		An Australian government backed loan with competitive rates to assist businesses after lockdowns. Borrow up to $5,000,000. Variable rates from 4.5% p.a. up to 3.95% p.a.	Enquire now	Compare	loading Fetching your data...
Prospa Business Loan		$5,000	$500,000	3 months to 3 years	3% origination fee		Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $5,000 is necessary. Note: Loans approved by 30 June 2022 are eligible for no repayments for the first 8 weeks of their term.	Go to site More Info	Compare	loading Fetching your data...
Octet Trade Finance		$100,000	$12,000,000	1 month to 2 years	Transaction fee 2.5%		Access a line of credit to pay suppliers in over 65 countries. Borrow from $100,000 up to $12,000,000.	Go to site More Info	Compare	loading Fetching your data...
CommBank SME Restarter Loan		$10,000	$5,000,000	Up to 10 years	No approval or administrative fees		This loan only applies to businesses eligible under the SME Recovery Loan Scheme. Borrow up to $5,000,000 with a special, low rate loan supported by the Australian government to help businesses recover from lockdowns. Variable rates range from 2.6% p.a. to 3.75% p.a.	Enquire now	Compare	loading Fetching your data...
Earlypay Equipment Finance		$20,000	$1,500,000	2 to 5 years	$750 - Establishment fee		Upgrade or expand your business's equipment with equipment finance from Earlypay. Borrow from $20,000 to $1,500,000.	Go to site More Info	Compare	loading Fetching your data...

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