Rural Finance – Concessional Loans: South East Victoria Bushfires

This program aims to support eligible primary producers, small business and not-for-profit organisations in the Baw Baw, Cardinia and Latrobe Local Government Areas that have been affected by the February/March 2019 bushfire event.

Loans available are:
- Up to $200,000 for direct damage.
- Up to $100,000 for significant loss of income.

The following terms and conditions will apply to all concessional loans:
- Concessional variable interest rate of 0.82% p.a. for the 2019-20 financial year and then an annual concessional variable interest rate based on 50% of the 10-year Commonwealth Government bond rate for a period of up to five years (loans revert to a commercial rate of interest for any remaining loan term after the concessional 5 year period).
- Application fees will not apply however statutory costs and other charges to establish loan securities will apply.

The level of support provided will have regard for insurance recoveries and the financial resources available to affected entities.

Eligible applicants include:
- Small businesses that employ less than 20 full time equivalent staff. Applicants may be sole owners, partnerships or owners of private companies where the major portion of their income is derived from the business and who substantially devote their time and capital to the conduct of the business.
- Incorporated charity or non-profit organisation. The Australian Taxation Office definitions for charities and non-profit organisations will apply.

The eligible entity must:
- Be located in a designated local government area of Baw Baw, Cardinia or Latrobe and have incurred direct damage or significant loss of income from the February/March 2019 bushfires event.
- Use the disaster recovery loan to re-establish the entity’s operations at the same location or within the same local government area. Reasons to re-establish in the affected local government area but not in the same location could include:
a) The business can no longer operate in the original location due to disaster risks (local council advice or clear evidence of repeat issues).
b) The location is no longer accessible due to disaster damage.

Please refer to the Guidelines for the complete eligibility requirements.

Eligible costs include:
- Additional labour costs (above and beyond normal wage expenditure).
- Equipment and materials to undertake clean-up.
- Cost of disposal of damaged items or deceased livestock.
- Repairs to buildings (other than housing) and fencing not covered by any other means of cost recovery (e.g. insurance).
- Salvaging, or re-establishing pastures and/or fodder crops (e.g. seed and fertiliser).
- Purchase of fodder (not covered by other assistance).
- Replacement or repair of plant and equipment.
- Replacement of deceased livestock.
- Purchase, or hire/lease costs, of equipment essential to the immediate resumption of activities.

Publicly listed companies are not eligible for support.