What is a concessional loan?
A concessional loan is a below-market interest loan provided by a government body or government-backed lender. It must be repaid, but at more favourable terms than commercial lending — lower interest rates, longer terms, or more flexible conditions.
How it works
You apply directly to the government lender (e.g., CEFC, Regional Investment Corporation) or through a participating commercial bank offering a government co-financed product. If approved, you draw down the loan, use it for the specified purpose, and repay it according to the schedule. You keep any profit generated.
Advantages
- ✓Access to capital at better-than-market rates
- ✓Longer repayment terms than commercial lending
- ✓No equity dilution
- ✓Can fund large investments that grants won't cover fully
Considerations
- ·Must be repaid — creates debt obligation
- ·Often requires security/collateral
- ·Minimum loan sizes can be high (often $250,000+)
- ·Purpose-restricted — can't use for general business expenses
Open Concessional Loans
57 programsA program that registers venture capital limited partnerships to invest in Australian businesses at various stages of development. Registered VCLPs have capital and are authorized to make venture capital investments in eligible companies, with investment focuses ranging from early-stage high-tech companies to mid-market buyouts.
The ESVCLP program supports fund managers and investors in stimulating early stage venture capital investments in Australia. Fund managers can raise venture capital funds between $10 million and $200 million to invest in innovative early stage businesses, while both fund managers and investors receive tax benefits including exemptions on income and gains from eligible investments.
Concessional loans for businesses in the Northern Territory to undertake projects that expand and grow their business. Projects must be of net economic benefit to the NT and should create and sustain new local jobs, increase economic activity, expand production capacity, or grow export capability.
This initiative provides access to financial support for eligible high-growth potential businesses in the Northern Territory to help establish or expand operations and for projects that may not otherwise be able to readily access capital. Support includes concessional loans, equity investments, and infrastructure loans of up to $10 million.
Loans available to Aboriginal and Torres Strait Islander owned small businesses to help them start, grow or restructure their operations. Funds can be used for working capital, purchase of existing businesses, plant and equipment, or other commercial assets.
This program provides low-interest loans to Queensland primary producers whose assets have been significantly damaged by the Western Queensland Surface Trough and Associated Rainfall and Flooding between 21 March – 19 May 2025. Loans can be used to repair or replace damaged plant, equipment, farm buildings, livestock, and meet carry-on requirements to re-establish normal operations.
A $60 million loan scheme providing financial assistance to Tasmanian businesses to develop, expand, or undertake new projects that promote economic growth. The scheme offers concessional interest rates for the first three years, with loans ranging from $100,000 to $5 million over a term of up to 5 years.
This scheme provides concessional loans to Tasmanian businesses to help them develop, expand, or undertake new projects that promote economic growth. Loans range from $100,000 to $5 million at variable interest rates over a loan term of up to 5 years.
Program information is sourced from official government websites and updated regularly. Always verify details with the official source before applying.