NSW Rural Assistance Authority – Emergency Bushfire Response Concessional Loans

This program aims to support small businesses, primary producers and non-profit organisations directly affected by the 2019-20 bushfire disaster events (eligible disaster events commencing August 2019). It is provided through a joint Disaster Recovery Funding Arrangement between states and territories and the Commonwealth Government, intended for entities which have suffered significant damage to their assets and/or a significant loss of income as a direct result of the eligible disaster and to be used for the purposes of restoring and/or replacing damaged assets and/or to meet working capital expenses.

Loans are available in two categories:
1. Bushfire Working Capital Loan
- Loans of up to $50,000 are available over five years, with a two year interest and payment free period.
- This loan can be used for essential expenses while the business returns to its normal level of trading such as; wages, rent, goods or services, fodder and water for livestock or transporting livestock or produce.

2. Bushfire Recovery Loan
- Loans of up to $500,000 are available over ten years, with a two year interest and payment free period.
- This loan is available for significantly larger investments such as replacing or repairing damaged infrastructure, purchasing livestock or replanting areas that were affected by the disaster.

The interest rate on each category of concessional loan will be reset on 1 July of every year at 50% of the 10-year Commonwealth bond rate averaged from 1 April to 30 June of the preceding financial year (consistent with the Commonwealth Concessional Loan Interest Rate defined under the Disaster Recovery Funding Arrangements). For the 2019-20 financial year the interest rate is 0.82%. The Rural Assistance Authority will not charge any interest rate higher than this rate.

Eligible applicants must:
- Be a small business owner, primary production enterprise or a non-profit organisation.
- Hold an Australian Business Number (ABN) and have held that ABN at the time of the eligible disaster, or in the case of a non-profit organisation be an incorporated charity or non-profit entity which is registered with the Australian Charities and Not-for-profits Commission (ACNC) or an equivalent State regulatory body at the time of the eligible disaster.
- Own a small business, primary producer enterprise or be a non-profit organisation located in the defined disaster area for the eligible disaster.
- Have been engaged in carrying on the business, farming activity or be a non-profit organisation when affected by the eligible disaster.
- Be primarily responsible for meeting the costs claimed in the application.
- Be intending to re-establish or continue carrying on the business or non-profit organisation or conducting the farming activity within the same Local Government Area.

Please refer to the Guidelines for the complete list of eligibility requirements and eligible local government areas.

Eligible activities include the following:
1. Asset replacement: Costs of restoring and/or replacing damaged small business, primary producer on non-profit organisation assets in accordance with current codes and standards. This includes costs such as:
- Repairing or replacing damaged plant and equipment.
- Repairing or replacing buildings and fences.
- Supplying stock to replace lost stock and maintain liquidity of the business.
- Purchasing livestock to replace those that have been lost in a disaster.
- Replanting, restoring, or re-establishing areas that were affected by the disaster (associated with a primary production enterprise).

2. Working capital: Essential expenses while the business returns to its normal level of trading, such as:
- Paying business related bills.
- Paying salaries or wages.
- Paying rent, lease and rates.
- Paying for goods or services, including for example fuel, essential to carry-on the business.
- Buying fodder or water for livestock or produce (associated with a primary production enterprise).
- Transporting livestock or produce (associated with a primary production enterprise).