About this programme
The Business Growth Loan Scheme is a $60 million lending program run by the Tasmanian Government to help Tasmanian businesses fund development, expansion or new projects that grow the state's economy. It sits inside the broader Tasmanian Government grants and funding program and is administered by Business Tasmania on behalf of Tasmania Development and Resources (TDR).
The scheme provides loans rather than grants: businesses borrow directly from the Tasmanian Government at a concessional interest rate for the first three years of the loan, with commercial rates applying after that. It exists specifically as a gap-filler for projects that a bank or normal commercial lending channel won't fully fund on its own.
It targets businesses located in Tasmania with a clear commercial project, a plan to service the debt, and a case for why Tasmanian Government support is needed on top of (or instead of) normal bank finance. The scheme is explicitly tied to Tasmanian Government policy objectives, including the state's Small Business Growth Strategy, and to Tasmanian employment, labour and materials outcomes from the funded project.
How it works
Loans range from a minimum of $100,000 to a maximum of $5 million, with a loan term of up to 5 years.
Concessional interest rates apply for the first three years of the loan (the rate current on the official page is 7.28%); commercial rates apply from year 4 onward. Interest accrues from the start of the loan.
Principal repayments must begin no later than 1 year after the loan is first drawn down. Loans must be repaid in full, or fully refinanced, by the end of the agreed loan term.
Loan security must include freehold security, up to a maximum Loan-to-Value Ratio (LVR) of 80%.
The scheme is capped at $60 million in total lending and stays open for applications until 5pm on 18 December 2026, or until all funding is committed, whichever happens first.
Who can apply
To be eligible, the business must hold an active Australian Business Number (ABN), be registered for GST, and be located in Tasmania.
The applicant must be able to clearly demonstrate: an ability to service the loan; the skills and experience to manage the proposed operation; a satisfactory ability to cover project contingencies and cost overruns; that the project supports Tasmanian employment and will use Tasmanian labour and materials wherever possible; and that the project aligns with an identified Tasmanian Government policy objective (such as the Small Business Growth Strategy 2026) and contributes to growth in the Tasmanian economy.
Critically, the applicant must show that Tasmanian Government assistance is actually required — that the project cannot be funded on commercial terms through normal banking channels. This is assessed alongside a bank's own willingness to fund all or part of the project.
Separate ineligibility criteria also apply and are set out in the scheme's official guidelines document; applicants should check these before applying.
How to apply
- Read the official Business Growth Loan Scheme guidelines and review the eligibility criteria.
- Discuss lending requirements with your bank first, to determine whether it can fund or partly fund the planned expenditure or project.
- Discuss the proposal with your financial or business advisors.
- Email the Business Growth Loan Scheme team (bgls@building.tas.gov.au) in the first instance to arrange a discussion of the proposal, or to ask questions.
- Building Tasmania will then provide a link to apply via SmartyGrants, the online loan and grant management system used to submit and manage the application.
Frequently asked
What is the Business Growth Loan Scheme?
It is a $60 million Tasmanian Government loan program that helps Tasmanian businesses fund development, expansion or new projects that grow the state's economy. It is administered by Business Tasmania on behalf of Tasmania Development and Resources (TDR), and provides a loan rather than a grant.
How much can a business borrow, and for how long?
Loans range from $100,000 to $5 million, with a term of up to 5 years. Principal repayments must start within 1 year of the first drawdown, and the loan must be repaid in full, or refinanced, by the end of the term.
What interest rate applies?
A concessional interest rate applies for the first three years of the loan, currently 7.28% on the official page, with commercial rates applying from year 4 onward. Interest accrues from the start of the loan.
Who is eligible to apply?
Tasmanian-located businesses with an active ABN and GST registration that can demonstrate they can service the loan, manage the funded project, and cover cost overruns, and that the project supports Tasmanian employment and aligns with a Tasmanian Government policy objective. Applicants must also show the project cannot be fully funded through normal bank lending.
Do banks need to be involved before applying?
Yes. Applicants are expected to first discuss their lending requirements with their own bank to see whether it can fund or part-fund the project, since the scheme exists to fill the gap normal commercial lending will not cover.
What security does the loan require?
Loan security must include freehold security, capped at a maximum Loan-to-Value Ratio (LVR) of 80%.
When does the scheme close?
Applications are open until 5pm on 18 December 2026, or until the full $60 million in funding is committed, whichever happens first.
How do I start an application?
Email bgls@building.tas.gov.au to discuss the proposal and confirm eligibility first. Building Tasmania then provides a link to the SmartyGrants portal, where the formal application is submitted.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.