The initiative will give Victorian SMEs and startups access to affordable finance to boost their cashflow so they can develop new products, services and technologies vital to the state's future economy.

This will ensure they can invest in research and development to keep their businesses competitive, employing researchers and innovators, conducting trials and experiments, and purchasing assets and equipment critical to R&D work programs.

Successful applicants will be able to borrow between $250,000 and $4 million in low-interest loans, with total funding under the 2‑year initiative capped at $50 million.

Administered by Invest Victoria, the initiative will give a much-needed boost to Victorian startups and SMEs, who often have a hard time accessing affordable finance.

Victorian SMEs that currently qualify for a refundable tax offset under the Commonwealth’s R&D Tax Incentive are eligible to apply for these loans.

The R&D Cash Flow Loan initiative is now open for applications.