NSW Government Cooperative Loan Scheme

The NSW Government Cooperative Loan Scheme facilitates loans to eligible cooperatives to expand or modernise their operations within NSW.

Under the scheme, Australian-based cooperatives that have been in operation for three or more years may qualify for a loan.

The scheme aims to encourage investment in regional industries that deliver job security and economic growth in regional parts of the state.

Key benefits

Successful applicants are required to pay interest (on either a monthly or quarterly basis) until the loan’s maturity date, at which point the principal is repaid.

Loan recipients may be eligible for tax deductions under section 120(1)(c) of the Income Tax Assessment Act 1936. Applicants should seek independent legal or tax advice to confirm their eligibility.

Eligible organisations

The scheme is available to cooperatives that are:

  • Australian-based 
  • Have been operating for at least three consecutive years
  • Can demonstrate the ability to repay the loan
  • Able to secure the required bank guarantee.

Under the NSW Cooperative Loan Scheme, a cooperative includes:

  1. corporations incorporated and registered pursuant to the Co-operatives National Law (NSW)
  2. a corporation incorporated and registered under the corresponding Co-operative National Law of any other State or Territory in Australia; and 
  3. any other body corporate that is a co-operative company for the purposes of Part III Division 9 of the Income Tax Assessment Act 1936.

Eligible projects

The loan must be used in line with the primary activity of the cooperative borrower, either to improve production facilities or to purchase capital assets to expand or modernise. The project must be based in regional NSW (excludes Greater Sydney, Newcastle and Wollongong Local Government Areas).

Examples include purchasing new machinery or equipment to improve current production processes; making improvements to production facilities such as water treatment or waste treatment plants; and purchasing new storage or processing facilities.

Loans available

Loans are administered by the NSW Treasury Corporation on behalf of the state.

Loan type Fixed or variable rate loans
Interest rate Available on application
Loan term Maximum 7 years*
Loan amount Generally minimum $500,000

Establishment fee $5,000

Prepayment fee $1,000 per prepayment

Break costs may apply

Interest payments and loan repayments

Interest payable on monthly/quarterly basis until loan maturity date

Principal repayable on loan maturity date

Other requirements

Cooperatives must provide a bank guarantee from an Australian bank with a credit rating of A or higher for the full amount of the loan plus 6 months interest.  

*The maximum allowable tenor for Cooperative loans is determined by the credit rating of the bank supplying the bank guarantee:

Credit Rating of Bank Maximum Loan Term (Tenor)
AA- 7 years
A+ 7 years
A 3 years


How to apply

Applications can be made by completing the online form.  

The NSW Department of Regional NSW assesses the eligibility of each application before the NSW Treasury Corporation prepares loan documentation on behalf of the state.

Information required

Applications are required to provide the following information as part of their online application for a loan under the scheme:

  • Cooperative's details
  • Requested loan details
  • Project details including location and expected outcomes
  • Business plan including financial analysis, expected returns on investment, industry assessment
  • Confirmation that the cooperative is able to provide a suitable bank guarantee issued by an Australian bank 
  • Certificate of Incorporation
  • Copy of the cooperative’s constitution or rules
  • Confirmation of independent legal advice obtained regarding eligibility for tax deductions under Part III Division 9 of the Income Tax Assessment Act 1936
  • Audited financials for the previous three years. 

More information

Contact staff at the Department of Regional NSW if you have any questions or would like to discuss your cooperatives eligibility. 

Email: regionalnsw.business@regional.nsw.gov.au or Phone: 1300 679 673

Top of page