25 May 2016 Resources
Two Arrium suppliers have accessed the State Government’s new interest-free Whyalla Small Business Loan Scheme in order to address cash flow issues associated with the Arrium Administration.
Treasurer Tom Koutsantonis has approved the application for a $165,000 loan to DSE Civil Pty Ltd, a Whyalla-based specialist concrete supplier.
Mr Koutsantonis has also approved a loan of $90,000 for Delmac Power Equipment, which supplies a range of industrial equipment, such as engines, generators and pumps. He contacted both businesses today to notify them of the success of their applications.
There are an additional 14 businesses who are having applications for loans considered.
Treasurer Tom Koutsantonis said there was an intricate supply chain in Whyalla which supports the operation of Arrium, and those companies are struggling as a result of the Administration process, which has resulted in payments to many suppliers being frozen.
Member for Giles Eddie Hughes said small and medium-sized businesses in Whyalla are hurting, and the last thing they want is to succeed in securing the ongoing viability of Arrium, only to find the supply chain in Whyalla has collapsed around it. This would be a terrible outcome for Whyalla, and this scheme would go a long way towards ensuring that does not happen.
The Whyalla Small Business Loan Scheme was launched earlier this month to support small businesses experiencing cash-flow challenges as a result of Arrium entering administration.
The scheme is funded through $10 million from the Regional Development Fund and was established to support the suppliers to Arrium who may have had payments frozen as a result of the Administration process.
Under the scheme interest-free loans of up to $750,000 are available to South Australian businesses that supply Arrium. Applications for loans are considered on a case by case basis and provided over a term of up to three years.
In addition to this loan initiative the Government has engaged accounting firm Hood Sweeney to provide free financial counselling support, and legal firm Thomson Geer to provide small businesses with legal advice.
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