The NSW Rural Assistance Authority has just announced a new pilot program designed at reinvigorating the state’s food and beverage manufacturing industries.
In a new scheme entitled the “Engine and Emerging Industries Loan Pilot”, regionally based food and beverage manufacturing businesses in can put themselves for low interest loans of between $100,000 and $1 million.
These loaned funds can be used to invest in new technology or equipment that will increase overall efficiency and productivity.
The aim of the program is to give regional food and beverage manufacturing businesses the opportunity to adopt more advanced manufacturing capabilities and practices that may otherwise be currently unavailable to them.
To be eligible for one of these loans, businesses must fit the criteria of having less than 200 employees, a turnover of less than $250 million and be classified under Australian and New Zealand Standard Industrial Codes (ANZSIC) 111-119 or 121.
As a part of the application process, eligible businesses must also be able to demonstrate their long-term viability and financial capability to repay the loan, and have a detailed Business and Project Delivery Plan.
If successful, applicants will then have access to loaned funds at a fixed interest rate of 2.5% over a maximum loan period of seven years. Loan funds must be drawn down in their entirety within 18 months of acceptance.
Some of the examples offered by the Rural Assistance Authority for ways in which the loan funds can be used include:
· implementation of advanced manufacturing techniques and technology
· expansion of existing advanced manufacturing capabilities
· access to external expertise that is directly related to delivery of the project
· purchase and/or installation of specialist equipment and/or infrastructure necessary to progress the project including mobile equipment
· intellectual property protection or advice
· increased capabilities/efficiencies of pre or post-production phases, for example, implementation of pre-market and/or after-market service activities.
As a pilot program, the funding for this measure is at this stage limited. Applications for the program are open now and will be accepted until the total funds have been exhausted.
For more information on the loan program, and how to apply, visit the NSW Rural Assistance Authority website.
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