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WA announces $10 million in interest-free loans

Interest-free loans are now available for residential builders in WA to help them complete housing projects

The WA government has announced the establishment of a $10 million interest-free loan facility to help residential builders complete unfinished properties.

The Builders’ Support Facility will provide interest-free loans to support eligible residential builders complete new homes that have been under construction for more than two years.

A maximum of $300,000 will be available to each eligible builder (up to $60,000 per property), with payments made in instalments to stimulate more completions.

The loan scheme is targeted and measured to help builders complete outstanding projects, as well as prevent further insolvencies, and more homes being left incomplete.

The initiative is a direct response from a recent roundtable held between the state government, HIA WA, and the housing and construction industry, to boost housing supply and affordability in Western Australia.

The facility will offer interest-free loans to builders that meet the eligibility criteria, which include:

  • being a solvent WA-based residential builder that has been in continuous business in Western Australia for more than four years; and
  • have one or more uncompleted homes in Western Australia that commenced construction prior to January 2022.
  • “We know that the construction industry has experienced significant labour and material price hikes over the last few years,” WA treasurer Rita Saffioti says.
  • “This has delayed some residential builders from completing homes as the cost has increased significantly.
  • “We have also seen many families building new homes left stranded with incomplete projects and no timeline for delivery.
  • “The innovative loan facility will enable builders who have been unable to complete homes under construction for two or more years due to cashflow constraints, to complete these projects.

A registration of interest (ROI) is now available at www.smallbusiness.wa.gov.au/builders, with subscribers to be notified when the loan facility opens for applications. The ROI is open until Wednesday, 31 January 2024.

Builders are encouraged to register early for the facility, which will be available on a ‘first come, first served’ basis to eligible applicants. Applications will be subject to financial probity and credit assessment.

 

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