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
47 programsAn equity co-investment venture capital program that provides early-stage biomedical companies with investment to develop and commercialise biomedical discoveries. The fund supports therapeutic, medical, pharmaceutical products, processes, services, technologies and procedures that improve health and wellbeing through prevention, diagnosis and treatment.
A program that provides fund managers and investors with support to stimulate early stage venture capital investments. 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 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 of up to $5 million over a maximum term of 10 years can be used to repair or replace damaged plant, equipment, farm buildings, livestock, and meet carry-on requirements.
The $60 million Business Growth Loan Scheme provides loans to assist eligible Tasmanian businesses to develop, expand or undertake new projects that promote growth in the Tasmanian economy and align with the Tasmanian Government's strategic objectives.
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.
This program provides loans between $100,000 and $3 million to support tourism projects in regional Tasmania. Loans fund improvements and development of visitor accommodation, experiences, attractions, hospitality venues, event facilities, and worker accommodation for tourism and hospitality operators.
This scheme provides low interest loans to Tasmanian farm businesses, agri-food businesses and young farmers wanting to progress into their own farm business. It supports projects that advance the government's Agrivision 2050 plan which aims to increase the value of the agriculture and agri-food sectors in Tasmania.
Program information is sourced from official government websites and updated regularly. Always verify details with the official source before applying.