What is the Extraordinary Bushfire Assistance Loans?

The Extraordinary Bushfire Assistance Loans is a program to support small business owners, primary producers and non-profit organisations
directly affected by the 2019-2020 extraordinary bushfire disaster events.

 

Objective

The Extraordinary Bushfire Assistance Loans are intended to help eligible entities pay for costs of repairing or replacing assets lost or damaged because of the disaster or to provide working capital to assist entities meet expenses or in limited circumstances refinancing of eligible loans.

 

Funding

Concessional loans of up to $500,000 are available.

The amount of loan assistance available:

  • is based on an assessment of the applicant’s financial position, including any amount recoverable under an insurance policy;
  • cannot be more than the amount of net loss caused by the disaster.

Loan assistance available to refinance an eligible commercial loan is 50 per cent of the total outstanding loan balance to a maximum of $500,000.

 

Eligible Projects

Concessional loans are provided to re-establish the normal operations of the business. The loans are intended to be used for the purposes of restoring and/or replacing damaged assets and/or for working capital expenses that cannot be met due to a loss of income. Refinancing of up to 50
percent of eligible loan balances may be available where exceptional damage to assets has occurred and a financial need for this type of assistance is demonstrated.

Primary Producers

These concessional loans are provided to assist you to re-establish the normal operations of your primary production enterprise by covering costs such as:

  • repairing or replacing damaged plant and equipment
  • repairing or replacing farm buildings
  • purchasing livestock to replace those lost in the disaster event
  • meeting carry-on requirements including:
  • re-planting, restoring or re-establishing areas affected by the disaster event
  • paying salaries or wages
  • paying rent and rates
  • essential property operations.

Small Business

These concessional loans are provided to assist you to re-establish the normal operations of your small business by covering costs such as:

  • repairing or replacing damaged plant, equipment or buildings
  • meeting carry-on requirements including:
    • paying salaries or wages
    • paying creditors
    • paying rent and rates
    • buying goods, including fuel, for the purpose of carrying on the small business activities.

Non-profit Organisations

These concessional loans are provided to assist re-establish the normal operations of a non-profit organisations by covering costs such as:

  • repairing or replacing damaged plant, equipment or buildings
  • meeting carry-on requirements including:
    • paying salaries or wages
    • paying creditors
    • paying rent and rates
    • buying goods, including fuel, for the purpose of carrying on the non-profit organisation activities.

Eligible Applicants

To be eligible for a loan you must:

  • be a small business owner, primary producer or a non-profit organisation;
    • immediately before the disaster have carried on a primary production enterprise, small business or non-profit activities in the defined disaster area on a regular basis;
  • have suffered, as a direct result of the eligible disaster:
    • damage to assets used for carrying on business or non-profit activities; or
    • significant loss of income (such as a loss in trade due to evacuation, road closures and reduced visitor numbers);
  • for assistance to refinance an eligible commercial loan, have held a commercial loan in relation to carrying on a primary production enterprise, small business or non-profit activities immediately before the disaster event;
  • demonstrate reasonable prospects of long-term viability with the assistance given (this will be assessed in relation to the expected cost of recovery and projected cash flow shortfalls);
  • for assistance other to refinance an eligible commercial loan, have used all liquid assets and normal credit sources up to normal credit limits;
  • be unable to, from your own resources and without assistance under this scheme:
    • repair or replace assets directly damaged as a result of the disaster; or
    • return to operations at a similar level as before the disaster; or
    • refinance the commercial loan;
  • demonstrate the capacity to repay the loan;
  • have not received another concessional loan for loss or damage that was related to the eligible disaster;
  • provide security that is to the satisfaction of the authority (QRIDA).

Applications from businesses that employ 20 or more full time employees but have a turnover of less than $50 million may also be considered following submission to the National Bushfire Recovery Agency via the Queensland Rural and Industry Development Authority (QRIDA).

 

Timing

Applications close 31 December 2020.

 

More Information