R&D Cash Flow Loans
Enquiries now open.
The R&D Cash Flow Loans initiative will support innovative Victorian SMEs to invest in research and development activity to develop the products, services and technologies vital to the State’s future economy.
R&D Cash Flow Loans will offer low-interest loans provided by Treasury Corporation of Victoria (TCV) of between A$250,000 and A$4 million, for a period between 12-28 months, with total funding capped at A$50 million.
Victorian SMEs that currently qualify for the Commonwealth Government’s R&D Tax Incentive are eligible to apply for a loan.
Applicants will need to meet all eligibility criteria and initiative objectives and receive approved credit assessments to receive an R&D Cash Flow Loan, which will be administered strictly in the order that applications are received by Invest Victoria.
You are encouraged to seek your own professional advice to understand if the R&D Cash Flow Loan is appropriate to your circumstances.
Please note: The Victorian Government’s R&D Cash Flow Loans initiative and the Commonwealth Government’s R&D Tax Incentive are two separate unrelated programs.
Receiving a loan under the R&D Cash Flow Loans initiative in no way provides a guarantee of eligibility, or guarantee of receiving a refundable tax offset, under the Commonwealth Government’s R&D Tax Incentive.
Please familiarise yourself with the eligibility criteria below before submitting an application. Importantly, meeting the eligibility criteria alone does not ensure you will receive loans under the initiative.
Eligible entities and activities
You must meet the following criteria to be eligible to receive a loan under R&D Cash Flow Loans.
- does not engage in prohibited activities (listed below);
- is seeking a loan valued between $250,000 and $4 million;
- is prepared to enter into a standardised TCV Loan Agreement with non-negotiable terms and conditions in the TCV Loan Agreement;
- has previously received the Commonwealth Government’s R&D Tax Incentive refund, and will be eligible to be a recipient for future refunds based on forecast R&D activities;
Businesses that can demonstrate compelling potential for R&D in Victoria, meeting at least two of the following scenarios, may be granted loans:
- expected to lead to meaningful growth in R&D in Victoria;
- expected to lead to meaningful job creation in Victoria;
- expected to fund meaningful expansion of R&D operations into Victoria;
- headquartered in Victoria;
For these purposes growth, job creation and expansion can be regarded as “meaningful” if they are significant in the context of:
- the R&D activities of the business;
- the R&D market/industry;
- R&D activities in the geographical area or region of Victoria in which the business operates or directs its R&D activities;
- jobs that are permanent, full time, provide good prospects for advancement or training, are to be regarded as of greater significance than jobs that are temporary, part time, have poor prospects for advancement or training.
Prohibited entities and activities
Prohibited entities refers to all entities that are not eligible to receive a refundable tax offset under the Commonwealth Government’s R&D Tax Incentive.
Prohibited Activity means an activity which:
- is illegal under Australian laws (including, without limitation, the Labour Hire Licensing Act (VIC) equal opportunity, anti-discrimination, affirmative action legislation and other Victorian laws);
- is inconsistent with policies and procedures of the Victorian Government;
- involves the production, distribution, advocacy, sale, research or development of:
- tobacco or tobacco-related products;
- cluster munitions and other controversial weapons;
- thermal coal;
- logging of old growth forests;
- unregulated animal testing;
- live cattle and / or sheep exports; or
There are six steps in your application process.
Step one – Loan enquiry
To register you interest please submit a loan enquiry. Be sure to include your business information and an indicative loan amount. Once your enquiry is received, a loan application pack will be emailed to you for completion.
Step Two - Loan application
For the loan application you will be required to provide critical details about your business, the R&D activities being undertaken, financial documentation and other supporting documents.
You must submit your loan application via email.
Please note: Only complete applications will be accepted by Invest Victoria. Incomplete applications will be returned to you and considered when you resubmit a complete application.
Step Three – Application Assessment
Applications will be assessed by Invest Victoria against the eligibility criteria and program objectives and must include all required documents.
If your application meets these requirements, it will progress to the credit assessment stage.
If your application does not meet these requirements, it will not progress, and you will be notified in writing.
Step Four – Credit assessment
Applications will be assessed by independent credit advisors. This includes analysis of financial, non-financial and R&D Tax Incentive specific risks.
If your application is successful, Invest Victoria will make a final ruling on the appropriate loan amount and terms based on the credit assessment and you will progress to the TCV Loan Agreement.
Note: loan terms, including loan amounts offered, may be lesser than those originally requested by you.
If your application is unsuccessful, it will not progress, and you will be notified in writing.
Decisions made by Invest Victoria, based on independent credit advice, will be final.
Step Five - Loan Agreement
If your application is successful Invest Victoria will send you a TCV Loan Agreement and associated finance transaction documentation detailing the loan terms and conditions. The loan terms and conditions will be non-negotiable.
In addition, you will be provided TCV’s client account onboarding documentation which include forms relating to Know Your Client, the TCV Online client portal, direct debt arrangements and your bank account details and authorised personnel.
You will be required to complete all finance transaction and TCV client account onboarding documentation prior to drawing down any funds.
You must sign and return the original documents within 10 business days from the date of offer via post to:
R&D Cash Flow Loans
Level 32, 121 Exhibition Street
Melbourne VIC 3000
Step Six- Loan
Once you have signed the TCV Loan Agreement and associated finance transaction documentation, and TCV’s client account onboarding has been finalised, Invest Victoria will coordinate with TCV to enable your company to receive the loan.
You must draw down the loan within 45 business days from the date of offer. If loans are not drawn down in this period, the loan (or any part of it) may be withdrawn.
If you are eligible, the table below outlines indicative loan terms available to you.
Minimum loan amount
Maximum loan amount
12 to 28 months
Loan facility type
11am loan facility (interest only, renegotiated daily by 11am)
Variable TCV 11am loan interest rate
Interest will be calculated daily and payable monthly.
Loan to Value Ratio (LVR)
Less than or equal to 80 per cent of the anticipated amount of the annual R&D Refundable Tax Offset
R&D Tax Offset and Related Assets
First draw: within 45 business days of loan offer
Second draw: between 1 January 2022 and 28 February 2022
The loan facility will allow for two draws, with the first draw made at commencement of the loan, and the second draw made between 1 January 2022 and 28 February 2022.
The draw amounts are based on the forecast R&D expenditure provided by your appropriate Cash Flow Forecasts, with loan terms (including loan value and draw amounts) subject to credit assessment outcomes. The Conditions Precedent to the first draw, and Conditions Subsequent to the second draw are detailed in the TCV Loan Agreement.
You should familiarise yourself with the standard form TCV Loan Agreement and seek independent legal, financial and taxation advice to determine whether the TCV Loan Agreement is suitable
How to calculate the interest rate
The agreement between the Borrower and TCV provides for an 11am loan facility. The interest rate on the TCV 11am loan facility is variable and is determined with reference to the Reserve Bank of Australia’s target cash rate and TCV’s client lending fees. Currently (29 April 2021), TCV’s 11am loan interest rate is 0.265% (per annum).
Please note, that as a variable interest rate it is subject to change. It is recommended that Borrowers monitor changes in the RBA target cash rate. Any changes to TCV’s client lending fees over the life of the TCV 11am loan facility will be communicated to Borrowers.
Loan terms and conditions
The terms and conditions as outlined in the TCV Loan Agreement are non-negotiable. We recommends that you seek appropriate legal and financial advice prior to executing a TCV Loan Agreement to ensure it is appropriate to your individual circumstances and that you are aware of the risks and conditions.
The TCV Loan Agreement, once executed, is a legally binding document.
Invest Victoria may publicly reference the R&D Cash Flow Loans via media releases or case studies.
If you would like to reference the R&D Cash Flow Loans in you publicity or marketing you must first seek prior written consent from Invest Victoria .
Keeping us informed
If anything is likely to affect your organisation, research and development activities or ability to service the loan you must let Invest Victoria know.
We need to know of any key changes to your organisation or its business activities, particularly if they affect your ability to complete your project, carry on business and pay debts due.
You must also inform Invest Victoria of any changes to the company:
- nominated contact details
- company ownership structure
- bank account details.
If you become aware of a breach of terms and conditions under the TVC Loan Agreement you must contact us immediately.
Reports and servicing the loan
You will be required to provide reports in line with the TVC Loan Agreement.
We will expect :
- progress and status of R&D Tax Incentive activities and claims;
- financial statements (with a preference for audited financial statements);
- project expenditure, including expenditure of loan funds; and
- information on any changes to your business that may impact upon your ability to repay the loan.
We will monitor the status of your loan by assessing reports and may need to re-examine claims, seek further information or request an independent audit of claims and payments where required. The reporting requirements are explicitly referred to in the TVC Loan Agreement.
You will be required to enter into a direct debit agreement with TCV. Interest payments are in arrears and will be debited from a nominated bank account on the first business day of the following month and the final repayment date. Principal repayments will also be made via direct debit.
TCV’s 11am loan confirmations and monthly interest statements will be available on TCV Online.
The Loan Agreement stipulates dates that you must adhere to for Final AusIndustry Registration Dates, and Final Claim Dates, in relation to the R&D Tax Incentive. The following key dates ensure that you are meeting the requirements of the Loan.
Final AusIndustry registration date (FY22)
12 August 2022
Important: This is the final date by which we require you to lodge your application with AusIndustry in respect of the Eligible R&D you undertook in FY22.
Final AusIndustry registration date (FY23)
11 August 2023
Important: This is the final date by which we require you to lodge your application with AusIndustry in respect of the Eligible R&D you undertook in FY23.
Final claim date (FY22)
7 October 2022
Important: This is the final date by which we require you to lodge your income tax return with the ATO for FY22.
Final claim date (FY23)
6 October 2023
Important: This is the final date by which we require you to lodge your income tax return with the ATO for FY23.
- maintain a permanent office in Victoria; and
- employ R&D professionals that are based in Victoria.
You might like to visit our Frequently Asked Questions support page where we have answers to common questions about the program.
Enquire now for further information regarding R&D Cash Flow Loans.
Our team is available from Monday to Friday, 9am to 5pm (AEST)
Call: 0448 693 232