Small regional and county councils in NSW will now be able to apply for TCorp’s low-cost loans program, local government minister Wendy Tuckerman says.
The NSW Treasury Corporation council loans program criteria previously ruled out many smaller councils, but Ms Tuckerman says expanding eligibility will potentially unlock millions of dollars for regional community infrastructure projects.
“All councils, including county councils and Far West Councils, can now apply directly to TCorp for its low interest, safe and secure loans for new and upgraded infrastructure,” the minister said in a statement.
“A Far West council may wish to improve its roads or a county council may want to upgrade its water infrastructure and those improvements could now be easier.”
Since 2016, more than $1 billion in low-interest loans has been approved for more than 60 councils, funding projects such as sports ovals, art galleries, central business district redevelopment and infrastructure relating to housing, the government says.
Mrs Tuckerman said a previous expansion of the program to all councils for six months in 2020, as part of the COVID-19 economic stimulus measures, had proven successful.
Applicants still need to meet TCorp’s lending criteria to secure fixed-rate, long-dated loans from the State borrowing facility, including being able to demonstrate financial sustainability.
The council loans programs offers fixed rate amortising loans for terms between three and 20 years with quarterly or semi-annual repayments to NSW councils seeking funding for projects which make up part of their annual expenditure programme.
Loan facilities are available to local councils who qualify, or have an approved plan in place to qualify, under the NSW Government’s financial sustainability benchmarks and satisfy TCorp’s credit criteria.
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