Special Disaster Loans – BushfiresFebruary 5, 2020
The Rural Assistance Authority (RAA) announced yesterday, Tuesday 4 February 2020, the application process and guidelines for the Special Disaster Loans – Bushfires. The government assistance on offer for those impacted by the bushfires is provided through a joint Disaster Recovery Funding Arrangement between states and territories and the Commonwealth Government.
In summary small businesses impacted by the bush fires may be eligible for two types of loans from the RAA:
1) Up to $50K to replace working capital
2) Up to $500K for asset replacement including stock etc
Eligible primary producers, small businesses and not-for-profits in LGAs affected by bushfires that have occurred since 31 August 2019 can now access special disaster loans of up to $500,000. The loans are jointly funded by the State and Federal Governments under the Disaster Recovery Funding Arrangements.
There are two types of low interest loans available:
-The Bushfire Working Capital Loan of up to $50,000 over five years with a two year interest free and repayment free period.
The Bushfire Working Capital Loan is a $50,000 loan and is designed to provide immediate funds for essential expenses while the business returns to its normal level of trading such as wages, rebuilding infrastructure and purchasing of goods and services. The loan terms are up to five years, with a two year interest free and repayment free period.
-The Bushfire Recovery Loan of up to $500,000 over ten years, with a two year interest and payment free period.
The Bushfire Recovery Loan of up to $500,000 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.
- Visit the Rural Assistance Authority to check your eligibility and apply.
- Application through the Rural Assistance Authority website
- Refer to the Special Disaster Loans – Bushfires Guidelines
- Refer to the Special Disaster Loans – Bushfires FAQ’s
Should you have any questions around the special disaster loans or the application process, please contact Kothes Accounting Group on 6491 6491. We are always available to assist you in any way we can. Take care, and stay safe.