NATURAL DISASTER RECOVERY ASSISTANCE
VICTORIA – FEBRUARY 2014
DISASTER RECOVERY LOANS – INDIRECT IMPACT
PROGRAM DETAILS
Concessional interest rate loans are available for primary producers, small businesses and not-for-profit
organisations located in the local government areas of Hume, Macedon Ranges and Mitchell who have suffered
indirect or consequential effects from the February 2014 Bushfire.
LOAN PURPOSE
The purpose of the concessional loans is to fund recovery activities and alleviate the financial burden of expenses
or lost income incurred by primary producers, small businesses, and not-for-profit bodies indirectly effected by the
February 2014 Bushfire.
The loan may be used for essential working capital, being the amount required to continue business or primary
production operations for the next 12 months or until the next major income is received, and may include:
 salaries and wages
 paying creditors
 paying rent or rates
The loans are administered by Rural Finance in line with the joint State and Commonwealth Natural Disaster Relief
and Recovery Arrangements (NDRRA).
Please note that assistance under the program administered by Rural Finance does not cover households
(individuals); householders have access to personal hardship and distress grants. For more information please
refer to the Personal Hardship Assistance Program http://www.dhs.vic.gov.au/emergency.
Further information relating to the bushfire recovery can be obtained from http://www.recovery.vic.gov.au/home.
LOAN DETAILS
Support under the bushfire recovery loans are subject to the following conditions:
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Maximum loan: $100,000
Concessional interest rate: 1.92% p.a.
Concessional period: Up to 5 years*
Application fees will not apply.
The loan amount will be based on demonstrated need and capacity to service. Businesses must demonstrate
reasonable prospects of returning to profitable trading including a capacity to service borrowings.
The level of support provided will have regard for insurance recoveries and the financial resources available to
affected applicants. Where necessary, Rural Finance will work closely with the banking sector to develop suitable
financial packages to meet individual requirements. Adequate security acceptable to Rural Finance will be required
for any lending.
Primary producer and small business applicants may be sole owners, partnerships or owners of private companies.
Publicly listed companies are not eligible for support.
* At the end of the concessional period, the interest rate on any extended loan will be subject to review and will be set at, or
close to, commercial interest rates prevailing at that time.
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ELIGIBILITY CRITERIA
The small business, primary producer or voluntary non-profit body must:
 have been impacted by the February 2014 Bushfire. Applicants external to local government area of
Hume, Macedon Ranges and Mitchell but with a supply chain relationship to the impacted area are not
eligible for support
 be able to demonstrate the loss of income was directly related to the impact of the February 2014 Bushfire.
For example:
o a downturn in customer activity
o an inability to access markets to procure stock due to damaged public infrastructure or other
conditions restricting access.
o businesses are unable to get their goods or produce to markets (e.g. through road closures,
inability to access transport/saleyards for stock), or
o cancellations of tourist bookings in the immediate aftermath of the event
 be able to demonstrate the business operation was viable prior to the disaster and, with interim assistance
provided through the disaster recovery loan, will continue to be viable into the future
 use the disaster recovery loan to re-establish the business operations within the same location or within the
same local government area. Reasons to re-establish in the same local government area but not in the
same location could include:
o the business can no longer operate in the original location due to disaster risks (local council
advice or clear evidence of repeat issues), or
o the location is no longer accessible due to disaster damage.
Applicants who have suffered direct impact from the February 2014 bushfires are ineligible to apply for this
assistance as support is already available via the existing NDRRA Bushfire Recovery Loans and Clean-up and
Restoration Grants.
DEFINITIONS
Primary producer:
An individual, partnership, trust or company that:
 has a right or interest in a farm enterprise; and
 contributes a significant part of their labour and capital to the enterprise; and
 derives at least 51 per cent of their income from the enterprise.
Small Business
A business, other than a farm enterprise, that employs less than 20 full time equivalent staff
Not-For-Profit
An organisation must be an incorporated charity or not-for-profit organisation. The Australian Taxation Office
definitions for charities and not-for-profit organisations will apply.
PROCEDURE FOR APPLICATION
Affected parties seeking a Bushfire Recovery Loan under this program should contact Rural Finance on
1800 260 425 or access the website www.ruralfinance.com.au (under Industry Programs) to obtain an application
form and any further information. Completed applications should be forwarded to Rural Finance at the address
below.
If required, a Rural Finance employee will be in contact for a further discussion, which may include a personal
interview and/or on-site visit.
Applications close on 30 April 2015.
Rural Finance
PO Box 1313
Bendigo Central 3552
Ph:
Fax:
Email:
Website:
1800 260 425 or (03) 5448 2600
(03) 5441 8901
[email protected]
www.ruralfinance.com.au
October 2014