Natural Disaster Relief Scheme Loans

This program aims to provide assistance to eligible applicants who are in a declared natural disaster area and have been directly affected by flood/fire/storm or any other declared natural disaster.

Loans available are:
1. Primary producers and small businesses
- Up to $130,000 are available.
- Loan terms of up to ten years.
- Repayments of principle and interest can be made monthly, half yearly, quarterly or annually. The repayment term is preceded by a two-year interest and repayment free period.

2. Non-profit organisations
- Up to $25,000 are available.
- Loan terms of up to five years.
- Repayments of principle and interest can be made monthly, half yearly, quarterly or annually.

3. Sporting and recreation clubs
- Up to $10,000 are available.
- Loan terms of up to five years.
- Monthly repayments of principle and interest.

The interest rate is a concessional rate of interest, fixed for the term of the loan. The rate is currently 0.45%.

Applicants must lodge their application within six months of the date of the natural disaster.

Eligible applicants include primary producers, small business operators, sporting clubs and non-profit organisations in NSW that must:
1. Primary producers
- Earn the majority of your GROSS income from primary production.
- Be in working occupation of the farm.
- Conduct their farming activities on a rural property within a Local Government Area that has been declared a natural disaster.
- Be in urgent and genuine need of financial assistance.
- Demonstrate that:
a) If the required assistance were obtained commercially, their farming business would be placed in financial difficulty.
b) Their farming business has long-term viability.
c) Their farming business has the capacity to repay the loan sought.
- Provide security, acceptable to the NSW Rural Assistance Authority.
- Lodge an application within six months of the declaration of a natural disaster.

2. Small businesses
- Earn the majority of the gross income from their business enterprise.
- Be in working occupation of their business enterprise.
- Operate their main business enterprise within a local government area that has been declared a natural disaster and intends to re-establish within that local government area.
- Be in urgent and genuine need of financial assistance.
- Demonstrate that if the required assistance were obtained commercially, the business enterprise would be placed in financial difficulty.
- Demonstrate that the business enterprise has long-term viability.
- Demonstrate that the total business enterprise has the capacity to repay the loan sought.
- Provide security, acceptable to the NSW Rural Assistance Authority.

3. Non-profit organisations
- Be registered or incorporated as a not-for-profit organisation.
- Perform a service to the community or environment and are funded by grants or donations.
- Not perform a commercial function, charge a fee for service or represent commercial or industrial groups (e.g. industry bodies).
- Be within an area declared a natural disaster and have suffered damage to facilities or other assets as a direct result of the declared disaster event.
- Demonstrate that the organisation does not have the financial capacity to meet restoration costs from its own resources or insurance.
- Demonstrate that the organisation has the financial ability to repay the loan sought.
- Be unable to obtain assistance through normal channels.
- Provide security, acceptable to the NSW Rural Assistance Authority.

4. Sporting and recreation clubs
- Operate within a local government area that has been declared a natural disaster and intend to re-establish within that local government area.
- Have suffered significant loss or damage as a result of a natural disaster.
- Be unable to effect the necessary repairs or replacements, which are not recoverable through insurance, from their own resources and have exhausted alternative sources of assistance.
- Be in urgent and genuine need of financial assistance.

Eligible activities include:
- Primary producers and small businesses
a) Essential working capital.
b) Replacement and repair of damage caused to the property and associated improvements not covered by insurance.
- Non-profit organisations
a) Restoration of essential facilities, equipment or other assets damaged or destroyed as a direct result of a declared disaster. These funds may also be directed towards temporary storage or leasing of alternate premises.
- Sporting and recreation clubs
a) Restoring essential facilities, equipment or other assets that have been damaged or destroyed by a declared natural disaster.

The following are ineligible for funding:
- Trading accounts
- Lease or hire purchase instalments
- Interest on borrowings or loan repayments