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Frequently Asked Questions - COVID-19 Jobs Support Loans

About the loans

For what purposes are loans available?

COVID-19 Jobs Support Loans are available to meet the working capital needs of businesses and non-profit organisations that have been financially impacted by COVID-19. This includes expenses such as employee wages, paying creditors and rent and rates and stock.

Loans cannot be used to refinance existing business loans, or to purchase equipment or other assets.

Are the loans available to any type of business or non-profit organisation?

Yes. The loans are available to financially impacted businesses or non-profit organisations that have employees, operating in any Queensland industry or service sector.

How long will applications be open for?

COVID-19 Jobs Support Loans will be open to applications until 25 September 2020.

The scheme will close to applications if the available funding of $500 million is used before this date.

Can I apply for a loan if I close my business before government restrictions?

It is a requirement of the loan scheme that the business has been in operation since 1/7/2017 and intends to continue to operate into the future. If you have shut down your business and do not intend to continue operating, you are not eligible for the loan.

However, QRIDA recognises that many businesses (such as pubs/clubs/restaurants/café’s etc) have had to close their doors due to government restrictions and intend to re-open in the future. These situations are still eligible to apply.

What is the maximum amount I can borrow?

The maximum loan amount is 50% of your operation’s annual wage expense, to a maximum of $250,000.

Your annual wage expense is the average of your employee wage expense including superannuation for the 2017-18 and 2018-19 financial years.

If you work in the business, you may include your own salary or drawings in your annual wage expense.

Is there a minimum loan amount?

No minimum loan amount applies.

How long will I have to repay a loan?

All COVID-19 Jobs Support Loans will be provided for a term of 10 years, with the first year being interest and repayment free, followed by two years of interest only payments.

Principal and interest repayments will commence from the third year for the remainder of the loan term.

What is the interest rate for this loan?

A fixed interest rate of 2.5% per annum applies to loans over their term except for the first year when the loan is repayment free and no interest is charged. The next years are interest only, followed by principal and interest repayments on remaining term of the loan.

How often will loan repayments be required?

When repayments commence, they will be required on a monthly basis.

Is loan security required?

Loans up to $100,000 do not require loan security.

For loans over $100,000 and up to $250,000, a General Security Agreement (GSA) is required.

A GSA is a general charge over the business assets of an entity.

Can I apply more than once for a loan?

You can apply for more than one COVID-19 Jobs Support Loan.

However, you cannot borrow more in total than your maximum lending amount.

See question 4 for further explanation about how maximum loan amounts are worked out.

Applying for a loan

How do I apply for a loan?

You can apply for a loan using the online application portal available on QRIDA’s website.

This link will direct you to online application where you can enter and upload the required information and relevant documents.

What documents do I need before starting my application?

You will need to have the following documents ready to upload:

  1. Business Financial Statements for 2017-18 and 2018-19
    • Including Profit and Loss Statement, Balance Sheet and depreciation schedules
    • Financials must be provided for the applicant entity
  2. Personal Taxation Returns for 2017-18 and 2018-19
    • Returns for all associated individuals as prepared by your accountant
  3. Bank Account Information
    • Please provide account balances for all business loan and credit accounts. This may be copies of your most recent bank statements or information obtained from your internet banking platform.
  4. Australian Tax Office (ATO) Integrated Client Account Statement
    • Copy of the ATO Integrated Client Account Statement (for 12 months to the date of application) for the applicant/each member and all associated entities.
  5. Aged list of debtors and creditors at time of application
  6. Applicant Identification
    • QRIDA is required to adequately identify loan applicants. Please include copies of at least two of the following
    • identification documents: Australian Driver’s Licence, Australian or international Passport, Medicare Card.
  7. Organisation Constitution or Rules of Association and Certificate of Incorporation (if applying as a non-profit organisation)
  8. Trust Deed (if applying as a trust).

You will also be asked for general business details, wage details which may include superannuation payments, salaries or drawings from your business, business and personal assets and liabilities and more.

For example, the applicant entity needs to provide their financial statements for 2017-18 and 2018-19 including Profit and Loss Statement, Balance Sheet and depreciation schedules to help determine trading history, prior viability and wages calculation.

The businesses income is not currently affected, can I still apply?

It is a requirement of the scheme that the applicant business needs to demonstrate an impact from COVID-19 on their enterprise in order to meet eligibility criteria.

Can I apply for the loan if my business is under an ATO audit?

Provided there is no outstanding judgements/legal action resulting from the ATO audit and your financial statements (i.e. 2019 financial year) are up to date and available, you can still apply.

Is it possible to apply when the business operates under 2 ABNs?

QRIDA shall need to identify (from the financial statements) that each business that applies has its own standalone trading (income and expenditure), its own assets and its own employees. If a business operates 2 stores via 2 ABN’s at 2 sites, then it could apply twice.

However, if it is 2 stores via 1 ABN, it is eligible only once.

My 2019 Financials are not completed yet, am I able to proceed with the loan application?

QRIDA shall accept draft 2019 financial statements prepared by your accountant or, in extenuating circumstances beyond the control of the applicant, management reports shall be considered.

As a sole trader, I do not earn a wage, but I get a distribution at the end of the year, do I qualify for the loan?

Yes – QRIDA views your end-of-year distribution as the wage which you earn from the business as a sole trader. This figure should be input as ‘Owners Salary/drawings’ on the application form.

I forgot my password, what do I do?

Please click on the ‘Forgot your password? Reset it here’ link on the online application portal login page.

This will prompt you to enter your email address. Upon submission, a reset email will be sent to your email address.

Please note, if you did not click the link on the original validation email, you will not be able to reset the password.

What if I don’t have access to a computer or internet to complete and submit my application?

Applications for loans must be submitted using the online portal on QRIDA’s website.

In extenuating circumstances only may applications be accepted without using the online form. Please contact QRIDA on Freecall 1800 623 946 or email contact_us@qrida.qld.gov.au for information on available options.

What if I don’t have all the items I need to submit my application?

If you don’t have all the required items to submit your application, please seek the assistance of your business advisors.

Can I return and finish my application at a later time?

You may save your application as a draft. Each time you fill in an application page and select ‘next’ the data will be saved. To resume the application, log into the online portal and select ‘Applications’ on the left-hand column. Select the edit button on the drafted application to resume.

Can someone else apply for the loan on my behalf?

Only business owners can make a direct application via the QRIDA online application portal. Applications cannot be submitted by third parties on behalf of their clients.

You may have a business advisor such as your accountant, or other advisor assist you to compile information in order to submit your application, however to apply for a loan you will need to complete the online application form yourself.

How long will it take for my application to be processed?

QRIDA will assess loan applications in date order received, however assessment will not   commence until required documentation is received and the application is complete.

Given the high demand level, QRIDA is making its best endeavours to process your application as quickly as possible.

After you submit your application you can track its progress through the online portal, while a decision is being made.

If my loan application is declined, can I appeal the decision?

Yes. You will have access to a decision review if you are dissatisfied with decision on your loan application. See more details on the decision review process on the QRIDA website.

Financial and Director Information

If the company is owned by multiple people, is the approval and details of all owners required?

Details of all owners of private companies are required. Applying for the loan requires the consent of 2 directors (except in the case of sole-directorship companies) per the requirements of the Corporations Act.

Is a draft income tax return (IRT) acceptable?

Accountant prepared draft income tax return is acceptable if the finalised version cannot be provided.

Can a business owned by another business apply?

Separate businesses (identified as having separate ABN’s, separate trading via the financials and separate employees) can apply regardless of the business ownership. Non-trading shell companies and investment vehicles without employees or standalone trading are not eligible under the scheme.

Do applicants need to provide tax statements, or will a management account suffice?

If finalised 2019 financial statements have not yet been prepared, draft financial statements can be considered. In extenuating circumstances beyond the control of the applicant, management accounts can be considered. However, QRIDA may seek draft financials prior to approval of the loan.

Do all directors need to submit personal tax statements/finances? What to do if a tax statement isn't prepared?

All directors who are owners in the business need to provide personal financial information. If an income tax return is not prepared for a Director, QRIDA shall need verification of this and the reasons why it is not prepared/required.

The business has changed hands and no business financial statements from previous years. Will zero, PNL or balance docs be accepted?

QRIDA shall need to see proof that the business has changed hands (i.e. a purchase contract for a going concern business) and proof of the original establishment date if the current business owners have not operated the business since 1/7/2017. Whilst the historical financial information is preferable, QRIDA recognises that this may not be available in all instances.

If I have an amount owing or have an outstanding balance on the ATO Integrated Client Account Statement, am I eligible?

Amounts owing on the ATO integrated client account statement do not automatically disqualify an applicant under the Loan Program. QRIDA shall seek to discuss these outstanding balances with you in order to identify what arrangements are in place to repay these debts as part of the financial assessment of your business.

Are dividends included in owner drawings and salaries calculation?

QRIDA shall discuss owner’s drawings and salaries with you throughout the assessment process in order to determine how you are transferring money out of the business and into your personal name. This takes account of ‘paper transfers’ for tax purposes versus actual funds withdrawn for living and personal expenses. Depending on your situation, the dividends may or may not be included.

I run a business with a partner, but it operates under multiple business names, will I qualify for a loan?

Each business that applies needs to have its own ABN (i.e. one loan application per ABN). If you have multiple business names operating under the one ABN, it shall only be eligible once.

Does my business qualify if I operate in a limited partnership?

A limited partnership is an eligible entity type to apply for the assistance.

Who should I use as the member A&L for a company with shareholders?

QRIDA seeks to understand the assets and liabilities position for all shareholders in a private company. If the applicant is a public company, the assets and liabilities position of the company only is required.

Once I have submitted, can I make changes to my loan application?

Should you wish to make changes to your loan application, please discuss these with your QRIDA Assessment Officer when they contact you to discuss your proposal. However, please upload any further documents to your application and these shall be added to your file.

Do tax returns need to be for the director or for the business?

Yes – business directors tax returns are required for the application.

What ITRs and ICAs are required for the application?

ITR’s and ICA’s for the applicant business and also the business directors/owners are required for the application.

How is the business assessed as viable?

Business is assessed as viable if QRIDA is able to determine that the business has, over the 2017-18 and 2018-19 financial years, generated sufficient cashflow with which to meet operating expenses, service existing debts and provide for the living expenses/wages of the business owners/directors. If you have incurred abnormal or one-off expenses in the 2018 or 2019 financial years, please highlight these to QRIDA at application.

If I have multiple business, should these be submitted as multiple applications?

Each business that applies needs to have its own ABN. If you are applying for multiple businesses that have their own ABN’s, separate applications need to be submitted.

Will former bankruptcy in the business be an issue?

If there is former bankruptcy associated with the business, QRIDA shall seek to understand the causes/reasons for the bankruptcy and identify whether this has an ongoing impact on the businesses ability to service its debts today and moving forward. Please apply and QRIDA shall discuss your specific circumstances with you.

Is it an issue applying for the loan if the business structure changed from sole trader to co-owner?

No – QRIDA shall seek to identify the continuity of the business enterprise from when it first started to today in order to ensure that the business was trading at the 1/7/2017. QRIDA understands that businesses are dynamic and do not always remain static.

Is draft financials accepted?

2019 Financial year drafts can be accepted, provided they have been prepared/reviewed by your accountant. 2018 financials need to be finalised.

Do all directors need to supply personal assets and liabilities?

All directors who are owners in the business need to provide QRIDA with a statement of their personal assets and liabilities. If the director is not an owner in the business, only the identity details of the director are required.

Why do directors need to provide details of their personal assets?

Including and understanding the asset position of the directors who are also the owners of the business can assist QRIDA to more readily assess a loan request.

Assets such as buildings/land which are used within the business enterprise are often owned under the director’s personal names. Taking these arrangements into account can greatly assist QRIDA’s understanding of both the business leverage position and operating expenses.

For a number of assessments which have been undertaken, this additional information has enabled a prompt loan approval for the applicant business due to the business site (i.e. shop/warehouse) not being owned within the business trading entity. Identifying that this is owned by the business directors/shareholders has positively supported QRIDA’s assessment.

If a director is not an owner in the business, do they still need to provide details of their personal assets?

QRIDA does not assess the personal asset position of directors who are not owners of the business. However, the identity details of these directors shall need to be provided.

Is this loan means tests or have an asset value cap?

These loans are not means tested nor do they have an asset value cap.

Who is required to submit personal tax returns?

The 2017-18 and 2018-19 personal tax returns for all directors and/or business owners are required.

If the business entity is applying as a trust, please also include beneficiaries and/or individual trustees.

My 2018-19 tax returns are not yet finalised, what should I do?

If the 2018-19 tax returns are not yet finalised, please provide an accountant prepared draft.

What if my wages are higher for 2020 financial year than past 2 years?

Wages must be calculated for a full financial year. Please include the wages and salary figures for the 2017-18 and 2018-19 financial years.

What identification documents do I need to include with my application?

QRIDA is required to adequately identify loan applicants.

Copies of at least two of the following identification documents need to be submitted with an application:

  • Australian Driver’s Licence
  • Australian Passport
  • Medicare card
  • International passport.

How do I access the ATO Integrated Client Account?

An ATO Integrated Client Account provides transaction details from business activity statements, payments, penalties and any general interest charges. It also provides PAYG withholding details lodged electronically by large clients.

To access your ATO Integrated Client Account, please contact your tax agent. Alternatively you may be able to access this directly yourself through ATO online services with your myGovID.

Eligibility requirements

How can I find out if I am eligible for a COVID-19 Jobs Support Loan?

View loan guidelines here or on the QRIDA website.

If I am a business owner with no employees, can I still be eligible for a loan?

Yes, if you own a business without any employees you may be eligible for a loan.

To be eligible on this basis however, you will need to work in the business.

Total hours worked by owners in the business must also be equivalent to at least one full time employee (35 hours per week).

If I have a business with multiple branches or locations, could I be eligible for a loan for each branch or location?

If the business or non-profit organisation operates as a single business entity, it will only be eligible for a loan up to 50% of its annual wage expense, to a maximum of $250,000.

If branches or different locations of the business or non-profit organisation operate under separate legal entities (ABNs), they may be eligible for separate loans.

My business is headquartered outside Queensland, but I run operations within Queensland. Could I be eligible for a loan?

You may be eligible for a loan if your business or non-profit organisation has employees in Queensland.

Is there a minimum number of employees that my operation should have to be eligible for a loan?

To be eligible for a loan, businesses or non-profit organisations must have 1 or more full-time equivalent employees in Queensland.

A full-time equivalent employee is an employee who works at least 35 hours per week in the business.

Owners who work in the business may be regarded as employees.

Is there a maximum number of employees allowed to be eligible for a loan?

There are no maximum employee requirements for the loans.

I have ceased my operation temporarily for my staff and customers safety and have laid off my employees. I intend to reopen and reinstate my employees when conditions improve. Could I be eligible for loan under these circumstances?

Yes. You may be eligible for a loan in these circumstances so long as your operation has not permanently closed.

I have only recently purchased an existing business which had operated viably for some years under its previous owner. Could I be eligible for a loan?

QRIDA may however consider applications where the business has operated over the required period, but under different ownership for part of that period.

In these circumstances, applicants should provide financial statements for the business for the 2017/18 and 2018/19 financial years and be able to substantiate the annual wage expense for the business over this period.

I have recently restructured my business and my ABN is now different to the ABN I held at 1 July 2017. Could I still be eligible for a loan?

If you can demonstrate you owned the business continuously since 1 July, you may be eligible for a loan even if your business legal structure changed over this period.

My business labour force includes contractors. Can I include contractor costs in calculating my annual wage expense to understand how much I can borrow?

Contractor costs should not be included in the annual wage expense calculation since they are not employees of the business.

If a business employs a contractor that can or does operate under their own ABN, contractor wages cannot be included.

If a business employs a contractor on a temporary basis through arrangements such as a staffing agency, their wages may be able to be included for this application.

What happens if my business started operating after 1 July 2017?

As noted in the guidelines here, to be eligible for a concessional loan businesses must have been established from 1 July 2017.

A business may still be able to apply if they have purchased or taken over a business that was operating from 1 July 2017. Applicants will need to supply the required financials.

For other business support please contact:

  • Queensland Government support: 13 QGOV (13 74 68)
  • Queensland Small Business Hotline: 1300 654 687
  • Australian Government support - Business.gov.au or call 13 28 46

Receiving a loan

How will I know if my loan has been approved?

QRIDA will notify you by email if your loan application is approved.

How will I receive the loan funds?

After you have been notified that your loan application has been approved, QRIDA will prepare and send loan documentation to your nominated email address for you to review and sign.

When QRIDA receives your signed loan documentation, it will remit the approved amount to the bank account you nominated in your application.

How long will it take to receive loan funds after I return my signed loan documents?

The full amount of loan funds approved should be deposited to your nominated bank account within five business days of QRIDA receiving your signed loan documentation.

How do I make loan repayments?

When your loan repayments commence, they will be drawn from your nominated bank account under direct debit arrangements.

QRIDA will arrange a direct debit authority with your loan documentation.

Can I repay the loan early?

Yes. You can repay the loan at any time during its term.

Are there any fees or changes if I pay off the loan sooner?

No. No fees or charges added charges if you pay the loan off before the 10-year term is finished.

Apply now

Related information

Guidelines (PDF)

Application checklist (PDF)

Reviewing a decision


Other government assistance for business:

Queensland Government - 13 GOV (13 74 68)

Australian Government - 13 28 46

Last updated
1 April 2020