Rural Finance – Victorian Bushfires Concessional Loans

This program aims to support small business, primary producers and non-profit organisations impacted by the Victorian bushfires that commenced 21 November 2019. It is jointly funded by the Commonwealth and Victorian State Government under the Disaster Recovery Arrangements.

These loans are available in the local council areas of Ararat, Alpine, Ballarat, East Gippsland, Glenelg, Golden Plains, Greater Bendigo, Indigo, Mansfield, Moyne, Northern Grampians, Pyrenees, Southern Grampians, Strathbogie, Towong, Wangaratta, Wellington and Wodonga and the Alpine Resorts of Mount Buller, Mount Hotham, Mount Stirling and Falls Creek.

Loans of up to $500,000 are available.

The interest rate on concessional loans will be reset on 1 July of every year at 50% of the 10-year Commonwealth bond rate averaged from 1 April to 30 June of the preceding financial year (consistent with the Commonwealth Concessional Loan Interest Rate defined under the Disaster Recovery Funding Arrangements). For the 2020-21 financial year, the interest rate is 0.45%.

There will be an initial repayment holiday for a period of up to two years, during which repayments will not be required and interest will not accrue. The concessional interest rate period will be for a period of up to ten years (including the initial repayment holiday period). After the repayment holiday, repayments of principal and interest are required. Amounts cannot be redrawn.

Eligible applicants must:
- Be a small business owner, primary production enterprise or a non-profit organisation.
- Hold an Australian Business Number (ABN) and have held that ABN at the time of the eligible disaster, or in the case of a non-profit organisation be an incorporated charity or non-profit entity which is registered with the Australian Charities and Not-for-profits Commission (ACNC) or an equivalent State regulatory body at the time of the eligible disaster.
- Own a small business, primary producer enterprise or be a non-profit organisation located in the defined disaster area for the eligible disaster.
- Have been engaged in carrying on the business, farming activity or be a non-profit organisation when affected by the eligible disaster.
- Be primarily responsible for meeting the costs claimed in the application.
- Be intending to re-establish or continue carrying on the business or non-profit organisation or conducting the farming activity within the same Local Government Area.
- Have suffered:
a) Significant damage to assets as a direct result of the eligible disaster.
b) Significant loss of income as a direct result of the eligible disaster (such as a loss in trade due to evacuation, road closures and reduced visitor numbers).

Please refer to the Guidelines for the complete list of eligibility requirements.

Eligible activities include the following:
1. Asset replacement: Costs of restoring and/or replacing damaged small business, primary producer or non-profit organisation assets in accordance with current codes and standards. This includes costs such as:
- Repairing or replacing damaged plant and equipment
- Repairing or replacing buildings
- Supplying stock to replace lost stock and maintain liquidity of the business
- Purchasing livestock to replace those that have been lost in the eligible disaster
- Replanting, restoring, or re-establishing areas that were affected by the eligible disaster (associated with a primary production enterprise)

2. Working capital: Essential expenses while the business returns to its normal level of trading, such as:
- Paying bills
- Paying salaries or wages
- Paying rent and rates
- Paying for goods or services, including for example fuel, essential to carry-on the business
- Buying fodder or water for livestock or produce (associated with a primary production enterprise)
- Transporting livestock or produce (associated with a primary production enterprise)