This program provides loans towards capital improvements and equipment purchases.
Applications are submitted through the online application system SmartyGrants. Applicants will need to register or log in to SmartyGrants before starting their application.
You need to contact an Arts Tasmania program officer to receive a repayment quote and credit check form, before you can make a loan application.
Who can apply?
Low-interest loans are available for individuals, groups and organisations.
Tasmanian organisations (including museums and collections), individuals based in Tasmania who are over the age of 18, and groups with at least one Tasmanian member over the age of 18 are eligible to apply. If your group has interstate members, only the Tasmanian member/s can be the borrower.
Applicants must meet Arts Tasmania’s general eligibility requirements.
What can I apply for?
The low-interest loans program provides investment towards capital improvements and the purchase of equipment.
The low-interest loans program does not support projects, manufacturing, and the purchase of materials. If you are interested in being supported for projects, manufacturing and the purchase of materials, please see Arts Tasmania’s grant opportunities.
For museums and collections, the asset purchase must have outcomes in one or more of the areas of improving access to collections, collections management and care, museums management and/or product development.
How much can I apply for?
Please note that you can lodge one loan application per calendar year.
Loans are limited to a maximum of $100 000, but there may also be a limit on the available loan funds.
The 2017-18 interest rate is 1.4% per annum. Interest rates are variable, and reviewed on an annual basis.
If you are seeking in excess of $20 000 for an appreciating asset (other than tools of trade), you must be able to demonstrate that you have approached a commercial lender and have been refused financial assistance before making an application to Arts Tasmania.
How do I repay my loan?
Loan repayments occur in monthly instalments. A minimum repayment amount of $1 000 principal per annum plus interest applies.
The lifetime of your loan is determined by the purchase or project for which you are seeking investment.
The maximum loan term is ten years and the loan term can be varied depending on your ability to meet the repayments.
You are able to pay out the remainder of your loan at any time.
Will I be required to provide security on my loan?
If seeking a loan greater than $10 000, applicants are be required to provide security.
The form of security to be used will be determined by the Department of State Growth in consultation with the borrower and may take the following forms:
Some forms of security are drawn up by Tasmania's Crown Solicitor. This may incur a cost which must be met by the applicant.
How will applications be assessed?
The arts or collections component of applications will be assessed by multi-artform peers against the criteria of:
For more information, please visit criteria.
Low-interest loan applications are also assessed on the applicant's capacity to repay the loan.
Capacity to repay the loan will be determined by a credit check that is conducted by the Department of State Growth. Individuals will need to provide copies of their last two tax returns or a statement showing their last two years of Centrelink payments.
Organisations will need to provide audited financial statements and tax returns (if your organisation is required to submit tax returns) for the last two years and a budget for the next 12 months.