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NSW Government Cooperative Loan Scheme

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

Under the scheme, NSW-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.


Benefits of a loan

Benefits of taking out a loan under the scheme may include:

  • interest payments on a monthly or quarterly basis until the loan’s maturity date, at which point the principal is repaid
  • potential 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.

Loans available

Applicants can apply for either a fixed-rate or variable-rate loan under the scheme.

The 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.  

*Repayment terms are dependent on the credit rating of the bank providing the bank guarantee. 


The scheme is available to NSW-based cooperatives that have been operating for at least three consecutive years that can demonstrate an ability to pay the loan and to obtain the required bank guarantee.

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. 

Applicants are required to demonstrate:

  • they are based in NSW
  • they have been operating for at least three consecutive years
  • they are able to repay the loan
  • they can provide a suitable bank guarantee
  • the loan will be used in line with the cooperative’s principal activity.

Application and approval

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

Applicants must provide the following information as part of their application:

  • a letter outlining the purpose of the loan, which is in line with the cooperative’s principal activity
  • a business plan including a financial analysis and expected returns on the investment, arrangements for delivering the proposed project,  details as to how the loan will be repaid and a brief industry assessment.
  • confirmation that the cooperative is able to provide a suitable bank guarantee issued by an Australian bank
  • a Certificate of Incorporation, a copy of the cooperative’s constitution or rules, and  confirmation that the cooperative is based in NSW
  • audited financial reports for the previous three years.

Applicants should email the Office of Regional Development or phone 1300 679 673 to discuss their eligibility for the scheme and to request an application form.

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