The Andrews Labor Government is helping Victoria’s 79 councils deliver vital community projects across the state through a new low-cost loan scheme.
Minister for Local Government Adem Somyurek today announced the $100 million Community Infrastructure Loans Scheme, which will provide councils with access to low interest rate loans of between $500,000 and $10 million.
The scheme has been devised following requests from councils including Regional Cities Victoria.
Eligible projects include community centres and hubs, cultural facilities, public libraries, kindergartens and early learning facilities, heritage building restorations for community use and public spaces like parks, reserves and trails.
Victoria’s triple-A credit rating means the State can borrow money at cheaper rates than those available commercially.
This scheme will use that borrowing power to help councils get access to low interest finance, making significant community infrastructure projects financially feasible.
As well as providing access to low interest loans, the Labor Government will subsidise interest payments to further reduce the interest paid by councils – saving communities money to use elsewhere.
The Community Infrastructure Loans Scheme complements existing programs such as the $250 million Growing Suburbs Fund and the $18 million Living Libraries Infrastructure Program.
The new scheme was modelled off the success of last year’s $100 million Community Sports Infrastructure Loans Scheme which provides similar loans for or councils, clubs and organisations to develop new community sport and recreation infrastructure.
Quotes attributable to Minister for Local Government Adem Somyurek
“We are helping councils invest in the long-term needs of their communities by cutting the cost of borrowing.”
“Access to low interest loans will save ratepayers money and help councils deliver the community centres, libraries, parks and learning facilities they need.”
Quote attributable to Treasurer Tim Pallas
“This new loan scheme will help councils get vital infrastructure projects off the ground, with low interest rates that save communities money.”