Natural Disaster Loan Small Business

Natural Disaster Loan Small Business

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.

 

Background

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.

 

Funding

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.

 

Eligibility

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.

 

Timing

Applications may be made after the declaration of an eligible disaster.

 

More Information

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