The Federal Health Department today (1 July) launches a $128 million Refundable Accommodation Deposit (RAD) Support Loan Program, which will provide zero interest loans to eligible residential aged care providers.
The initiative reflects that some residential aged care operators are unable to access funding from the banks.
To be eligible for funding, approved providers of residential aged care must have had or expect its liquidity to fall below the relevant threshold (as set out in the program guidelines), must be assessed as being able to repay funds loaned, and is not able to access sufficient commercial or alternative financing.
Approved providers owned by a state or territory government are ineligible.
“COVID-19 has had a significant impact on residential aged care providers. This included some providers having to refund more RADs than usual. The RAD Support Loan Program offers zero‑interest loans to eligible approved residential aged care providers,” said the Federal Health Department in a statement.
“This loan program will enable eligible providers to refund RADs on time. Providers will need to repay the loan in line with their agreement with the Department of Health.”
The zero interest loans are available from 1 July 2021 to 30 September 2021.