COVID-19 Jobs Support Loan helping Brisbane business dependent on social gatherings

Business at Clear Mountain Lodge was ‘decimated almost overnight’ when restrictions on social gatherings, particularly weddings, and travel were put in place, eliminating the key sources of business. 

Clear Mountain Lodge was among the first to apply for a COVID-19 Jobs Support Loan. 

The loan scheme administered by the Queensland Rural and Industry Development Authority (QRIDA), provides finance of up to $250,000 for businesses and non-profit organisations impacted by COVID-19 to assist with carry-on expenses such as employee wages, rent and rates and other expenditure. 

Group General Manager Andrew Travers said the popular retreat had more than three decades of history in the region but depended on social gatherings, meetings, weddings and leisure travel as core business.  

“The business is a 51 room hotel with accompanying restaurant, conference and function facilities, ceremonial garden for weddings, day spa, and small vineyard,” Mr Travers said.  

“With the restrictions on group gatherings, social distancing and closure of licenced premises, we saw almost overnight our business decimated. The bulk of our business is derived from meetings, residential conferencing, and weddings.  

“All of these key areas of our business were simply unable to proceed with bookings either cancelled or having to be deferred indefinitely.” 

With the sudden impact on the business from COVID19, the business was placed in the position of having no new business, existing bookings either deferred or cancelled and refunds had to be made, Mr Travers said. 

He said bills still had to be paid, including suppliers, staff entitlements, plus holding costs for the property. 

Mr Travers said the business was able to use a Queensland Government Jobs Support Loan to support skeleton staff and cash flow as well as help prepare for when the business was able to re-open.  

He said the application was approved within days of being submitted.  

“We were able to handle most of the application ourselves via the online process and then directly with the officer responsible for processing and assessing the application, who was very helpful and understanding,” he said.

“The loan has provided immediate cash flow relief allowing the business to refund cancelled bookings, pay suppliers, pay employee entitlements, retain a skeleton staffing level to maintain the business to be in a position to quickly re-open as restrictions are lifted.  

“Combined with the Federal Government JobKeeper payments, we will be able to retain our core team of employees and provide ongoing employment into the future as conditions normalise. These loans will have a flow on effect which benefits not only the initial business but also the businesses and people which it deals with, thereby having a broader economic benefit. 

“It definitely assists with relieving the immediate cash flow issues, however the outlook for the future really depends on how long restrictions are in place and when people can once again travel and gather together. These are the key elements to our business.” 

Existing COVID-19 Jobs Support Loan clients can find important information about the ongoing management of their loans on the COVID-19 Jobs Support Loan page.

QRIDA is delivering the $1 billion COVID-19 Jobs Support Loan Scheme on behalf of the Queensland Government.