Unlocking Capital for Jobs Program
This program aims to assist small to medium sized enterprises to secure commercially viable loans where they would otherwise not have the balance sheet strength to satisfy a bank’s lending criteria.
The primary objectives of the program are:
- Creating or retaining Ongoing SA Jobs in the small to medium size enterprise sector.
- Leveraging $250 million in new financial accommodation (meeting specified criteria) for eligible small to medium sized enterprises, based on a maximum exposure to the government of $50 million.
- Supporting eligible small to medium sized enterprises in South Australia, that are participating in a targeted industry sector, to obtain new financial accommodation (meeting specified criteria) where the provision of that financial accommodation would enable the enterprise to:
a) Bring forward Business Expansion Plans that will result in the creation of Ongoing SA Jobs.
b) Implement Business Transformation Plans that will result in the creation and/or retention of Ongoing SA Jobs.
The program involves the government providing a partial guarantee (Program Guarantee) in favour of a bank participating in the program in circumstances where:
- The bank has a commitment to provide new financial accommodation meeting specified criteria.
- The borrower is a small to medium sized enterprise that meets prescribed eligibility criteria.
- That enterprise satisfies the bank’s normal commercial lending criteria except for the requirement of available collateral as security.
- The government believes the provision of that partial guarantee would facilitate the objectives of the program.
This is an uncommitted program and the government retains absolute discretion as to whether, and in which circumstances, it provides a Program Guarantee and even where an applicant’s circumstances meet the program’s eligibility criteria..
During the application period, the program will be closed to applications where:
- The aggregate exposure of the government under all Program Guarantees on issue exceeds the Program Exposure Limit ($50 million).
- The aggregate principal amount of all bank commitments for new financial accommodation that have the benefit of a Program Guarantee exceeds the Program Commitment Limit ($250 million).
Who Can Apply
Eligible applicants must be able to demonstrate in the application that:
- It is an eligible small to medium sized enterprise (Eligible SME).
- The new financial accommodation to be made available by its preferred bank is itself eligible financial indebtedness or, where there is more than one form of financial indebtedness made available, the various forms are eligible financial indebtedness provided either under a new credit facility or as an extension or variation to an existing credit facility (Eligible Credit Facility).
Please refer to the Guidelines for the complete information on eligible SME.
New financial accommodation to be provided by the applicant(s) preferred bank will be an eligible credit facility if:
- The provision of the new financial accommodation has met the preferred bank’s normal commercial lending criteria except for the requirement of available collateral as security.
- The new financial accommodation is in the form of a term loan, an equipment lease or in the nature of a working capital facility such as an overdraft facility, trade finance facility, debtor finance/accounts receivable facility or a credit card facility which are used exclusively for the operations of the enterprise. These forms may be provided by the preferred bank:
a) In one form on a standalone basis.
b) In combination for some or all of those forms under a standalone new credit facility or as an extension or variation to an existing credit facility the applicant(s) has with the Preferred Bank and which will be remaining in place.
- Where the new financial accommodation is to be an extension or variation to an existing credit facility, the financial indebtedness available under the existing credit facility must be limited to the following forms of financial indebtedness:
a) Fixed term loans or revolving loan facility.
b) Finance or capital lease facility.
c) Inventory finance facility.
d) In the nature of a working capital facility.
Main Assessment Criteria
The main assessment criteria include whether the:
- Application is within the program limits.
- Application has satisfied the eligibility requirements of the program.
- Issue of a Program Guarantee by the Treasurer would facilitate the objectives of the program.
|Application Form||August 2017||Download
|Use these documents as a guide only - always get the latest direct from the Administrator
6 March 2015
20 March 2015
4 months to go
30 March 2018
This program is open on an ongoing basis until 30 March 2018.
General - Non-Industry Specific
Training / Employment
Department of State Development
Department of State Development