What is the Natural Disaster Loan Small Business?
The Natural Disaster Loan Small Business is a program that provides low interest loans to small businesses directly affected by a declared natural disaster.
The Natural Disaster Loan provides low interest loans to small businesses directly affected by a declared natural disaster.
The loan is intended to help small businesses:
- return to their normal level of trading or until the next major income is received within 12 months from the date of disaster
- replace and repair damage caused and associated improvements not covered by insurance.
Small businesses who have been directly affected by a declared natural disaster including floods, fires or storm damage, may be eligible for low interest loans of up to $130,000.
This assistance measure is only provided to eligible small businesses following the declaration of a Natural Disaster by the NSW Government.
When activated, loans are available to small businesses that meet the following criteria:
- Have fewer than 20 full time (or equivalent) employees;
- Are a registered business, partnership or sole trader
- Have an Australian Business Number (ABN) and
- provide the owner with their primary source of gross income (more than 50%)
To be eligible small business operators must:
- have assets which have been significantly damaged as a direct result of the declared disaster event
- have been viable prior to the declared event
- demonstrate that the assistance will ensure the business continues to be viable
- demonstrate that they are continuing or will reestablish the business enterprise within the same location, or within the same local government area
- earn the majority of their gross income from the business enterprise and
- demonstrate that the business enterprise has the capacity to repay the loan sought.
- Have been in working occupation of your business at the time of the natural disaster.
- Demonstrate that your business has long-term viability.
- Demonstrate that your business has the capacity to repay the loan sought
- Provide security, acceptable to the NSW Rural Assistance Authority.
Applications may be made after the declaration of an eligible disaster.