Existing and emerging small businesses can now apply for interest-free loans under a new partnership between customer-owned bank, Bank of Us, and micro-loan provider No Interest Loans.
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The new partnership will provide support for low-income business owners through no-interest loans capped at $3000.
BOU announced on Friday they have committed to providing $450,000 in new capital - at no cost - to NILS to support the development of small businesses.
NILS chief executive John Hooper said the loans made it possible for business owners to create sustainable income and reduced their dependence on government support.
"We know these loans are life-changing and enable many of our clients to not just create work for themselves and move off Centrelink payments, but over 20 per cent then employ others as well," he said.
He said the additional capital provided by BOU meant NILS could increase the number of loans available to the community.
Just Tag and Test, Saintley Sweets, Sarox and Balloonies Studio were four of the businesses that have benefited from the micro-loans.
Balloonies Studio owner Tina Kalpenos said the $3000 loan she received from NILS in September allowed her to expand her party supply business.
"It helped us expand the business to include a better range of products and start hiring props, giving us the kick start to grow the business," she said.
Mr Hooper said the loans were paid back at $60 a fortnight over two years, making them a safe choice for people who were considered vulnerable based on their income and more susceptible to predatory lending.
BOU chief executive Paul Ranson said as a customer-owned bank, BOU had a mandate to support initiatives that benefited their customers and the community.
"As a customer-owned bank, we reinvest our profits to benefit our customers and the community, and we know that by supporting NILS Tasmania by providing $450 000 in capital at no cost, that our financial support is delivering positive tangible results for Tasmanians."
Ms Kalpenos said the growth she had experienced over the past two years was unexpected, and at times she had struggled to keep up with demand.
She said she planned to expand her business to include a storefront and hoped to take on additional staff.
"If I'm being realistic I should have employed about two people a year ago. I really have no idea how I've managed to just keep it going," she said.
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Andrew Chounding
An experienced multi-platform journalist focusing on the issues that impact health in Tasmania. With a background in social research and public policy, health reporting for Andrew is about ensuring the best health outcomes for the Northern Tasmanian community. Contact Andrew at: andrew.chounding@examiner.com.au or 0437 358 262
An experienced multi-platform journalist focusing on the issues that impact health in Tasmania. With a background in social research and public policy, health reporting for Andrew is about ensuring the best health outcomes for the Northern Tasmanian community. Contact Andrew at: andrew.chounding@examiner.com.au or 0437 358 262
