Local Government Bulletins
Loans to community organisations
This bulletin is to advise local governments that the Treasurer has granted a general approval for local governments to provide loans to community organisations.
Most local governments provide assistance to community groups and organisations which make positive contributions to the quality of life in their local government area. Although assistance provided is generally in the form of cash grants and donations, assets, or in kind assistance such as concessional rates and no cost labour or repairs and maintenance provided by council staff, some local governments also provide loans to eligible organisations.
The provision of loans is captured under the Statutory Bodies Financial Arrangements Act 1982 (SBFA Act) and, as such, requires the Treasurer's approval. The approval process entails a considerable amount of effort on behalf of local governments, the department, and Queensland Treasury.
With a view to the state government's priority target of a 20 per cent reduction in regulation and red tape, the department has obtained from the Treasurer, on behalf of all local governments, a general approval for the provision of loans to community groups.
Please note the following conditions attached to this approval:
- the maximum loan amount for each community organisation will be the lesser of the amount set out in a local government's policy on financial assistance or $120,000
- the maximum repayment term for each loan will be the lesser of the term set out in a local government's policy on financial assistance or ten years
- the total value of outstanding loans to community organisations provided under this approval does not exceed $2 million at any one time for an individual local government.
Please refer to the approval letter from Queensland Treasury ( 30 KB) for more information.
The normal approval processes apply for any loan that falls outside the above limits. For further information or assistance, please contact the department.
Please note that section 74 of the SBFA Act requires that a local government must record in its SBFA Act register each loan that is provided to a community organisation under this approval.
Last updated: Monday, Nov 30, 2020