Low-interest loans for regional food and beverage businesses

THE NSW government has announced the first of seven low-interest loans to regional food and beverage manufacturers in a pilot program, including a local Northern Rivers business.

The loans are delivered as part of the government’s Regional Development Roadmap and aim to boost productivity, job growth and the delivery of advanced manufacturing capabilities.

Regional industry leaders indicated the need for assistance in adopting new technology to increase productivity and expand their market opportunities in a series of Ministerial Roundtables earlier this year.

Minister for Regional NSW Tara Moriarty said the government was changing the way it invested in regional NSW.

“This investment package supports our regional food and beverage manufacturers to grow, create more jobs and benefit local producers,” Ms Moriarty said.

“The NSW Government is committed to strengthening the farming sector and regional economies by encouraging and assisting local businesses that add value to local produce, expand their production capacity and product offerings so they can employ additional local people, compete against imported products and bring revenue into the region.”

Under the $5 million pilot program, loans are available between $100,000 and $1 million, and interest is charged monthly at a fixed rate of 2.5 per cent for the life of the loan over a maximum term of seven years. The loans do not require family homes as security.

Northern NSW recipient Byron Beef Jerky in Bangalow sources its beef locally, and its products are stocked by Woolworths, Coles and Dan Murphy’s.

The company will use the funds to convert existing areas into cool rooms and food preparation spaces and upgrade their power supply.

With production and storage capacity improvements, Byron Beef Jerky aims to drive higher demand for local beef and support job growth.

Business NSW executive director David Harding said the initiative’s take-up was not surprising.

“Enabling regional businesses to invest in themselves and scale is exactly what is needed, especially with a loan focus on automation, efficiency and export potential.

“I look forward to seeing these regional backbone enterprises grow and flourish and expect the pilot scheme to be a great success.”

For more information, head to nsw.gov.au/regionaldevelopmenttrust