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$10m for interest-free loans to Arrium suppliers

Interest-free Government loans of up to $750,000 will be offered to Arrium suppliers struggling with cash flow in the wake of the company’s administration.

May 02, 2016, updated May 02, 2016
Photo: Adam Jenkins/Flickr

Photo: Adam Jenkins/Flickr

Funded by $1o million from the Regional Development Fund, the measure was ticked off by cabinet today as businesses in Whyalla and the broader state struggle with payments frozen while the administrators come to grips with the steelmakers’ books.

Premier Jay Weatherill, who returned last night from his Paris whistlestop, will visit the region tomorrow, along with Treasurer Tom Koutsantonis and Regional Development Minister Geoff Brock, to meet with administrators, management and other affected businesses.

Koutsantonis said in a statement he had seen “firsthand the difficulties businesses in the region are facing”.

“There is a severe cash flow issue for the Arrium supply chain which has rippled through Whyalla’s small business community… this loan system should inject a positive cash flow and ease the burden for those businesses doing it tough at the moment,” he said.

Loans will be provided for terms of up to three years, although the Government says grants may also be offered “in special circumstances”.

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