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NSW Government
Rural Assistance Authority

Frequently asked questions

The below FAQs specifically relate to the Natural Disaster Relief Loan for small business operators.

What is the Natural Disaster Relief Loan?

The Natural Disaster Relief Loan is designed to support small businesses operators impacted by a natural disaster, by providing a concessional interest rate loan that can be used as essential working capital to continue business operations or to repair or replace damaged property. This type of loan is offered to primary producers, small business operators and non-profit organisations.

Who can apply for the Natural Disaster Relief Loan?

To be eligible, the small business operator must have been impacted by a declared natural disaster event and operate the business within a local government area that has been declared. Small businesses must also:

  • have fewer than 20 full-time (or equivalent) employees
  • be a registered business, partnership or sole trader enterprise
  • hold an active Australian Business Number (ABN) that was also current at the time of the event
  • earn the majority of income from the small business
  • have assets that have been significantly damaged as a direct result of the declared natural disaster
  • have assets located in the defined natural disaster area for the event that have suffered direct damage as a result of the declared natural disaster event
  • have suffered a significant loss of income as a result of direct damage from the declared natural disaster
  • intend to re-establish or continue the small business within the same location or within the same local government area (LGA).

How do I apply for the loan?

Applications for the Natural Disaster Relief Loan must be submitted online via our website.

How long do I have to apply?

Applications are open for six months from the date of the natural disaster declaration. Refer to the Declarations page of the RAA website for closure dates.

How much can I apply for and how long do I have to repay the loan?

A loan of up to $130,000 is available. The maximum loan term is 12 years, which includes a two-year interest and repayment free period and 10 years of principle and interest repayments.

What information do I need to provide with my application?

When you submit an application for a Natural Disaster Relief Loan, you will need to provide copies of the following documents:

  • Signed Mortgagees Consent Form from your existing mortgagee
  • Last 3 years’ balance sheets and financial statements of the applying small business (these include profit and loss statements, trading account and depreciation schedules)
  • Last 3 years’ individual taxation returns of all members of the small business and a current listing of all assets and liabilities held by each individual director, shareholder, partner or trustee of the small business
  • Last 3 years' of tax returns and financial statements for all related business entities that individual members of the small business are involved in, if applicable
  • Trust deed (if applicable)
  • Monthly cash flow budget for the next 12 months
  • Current LGA (council) rates and LLS rates notice(s) for property(s) where the damage occurred and the work is to be completed (if the affected property is leased, a lease covering the property at the time of the declared natural disaster outlining the tenant’s responsibilities is required)
  • Current LGA (council) rates for the property being offered as security, if different from above.
  • Proof of the small business’ address
  • Confirmation of bank details, such as the front page of a bank statement showing the account name, BSB and account number.

You can download a Mortgagee Consent Form template and a Cash Flow Statement template from our Forms and Downloads page, if required.

Can I send in an application whilst waiting on information from my bank?

Yes, although your loan will not be assessed until your application is complete.

Does a mortgage get taken over my property?

Yes. Loans are secured by a registered mortgage over land and not necessarily a first mortgage. Your bank must sign and stamp the lender’s consent form to support your application (if applicable).

Can I get an unsecured loan if I do not have security to offer?

No. As per the program guidelines acceptable security must be provided.

What can the loan be used for?

The Natural Disaster Relief Loan can be used for the following:

  • Essential working capital for up to 12 months from the date of the disaster, to continue business operations until normal income resumes or until the next major income is received
  • Replacement and/or repair of property damaged as a result of a disaster and associated improvements not covered by insurance.

What is the difference between direct and indirect damage?

Direct damage relates to physical damage that occurred due to the event. This means immediate damage caused by floodwaters at the time of the floods.

There is a distinction, however, between clean-up activities that cause damage in themselves and damage that occurs as a direct result of the declared disaster.

For example, a boat damaged during the floods or while floodwaters remained high would be covered. However, a boat damaged during recovery after floodwaters have receded would not be covered.

Indirect damage is the losses sustained as a consequence of the disaster. For example, downturn in customer foot traffic from road closures, loss of income and/or spoilage due to power outages.

Can I apply to cover loss of income?

No. The loan can be used for working capital for up to 12 months to continue business operations, however the business must have suffered direct damage to assets from the declared natural disaster.

Can I apply if I did not have direct damage but lost power for a prolonged period because of the natural disaster?

No, you must have damage to assets as a direct result of the declared natural disaster.

How do I access the funds once approved?

Once all legal requirements have been completed, the RAA will fully draw down the loan and deposit it directly to the nominated bank account.

What is the interest rate and can my interest rate change?

A concessional interest rate is applied to Natural Disaster Relief Loans. The rate applicable at the time of loan commencement is published on the program webpage. The interest rate applied to the loan is fixed for the term of the loan.

How does the RAA protect itself against fraud?

The RAA has a strong commitment to fraud prevention, detection, and response. Making a fraudulent application, including providing false or misleading information is a criminal offence which carries a maximum penalty of two years imprisonment, or a fine of $22,000, or both.

The RAA will also attempt to recover any assistance received as a result of fraud. More information can be found on our Fraud and Corruption page.

Who can help with my application?

If you have any questions about this program you can contact our team by calling 1800 678 593 or emailing rural.assist@raa.nsw.gov.au.

If you have difficulty understanding the guidelines or completing the application form you should seek the assistance of your rural/financial counsellor, business advisor, accountant or a trusted family member/friend. If you need assistance with interpreting or translating, please contact Multicultural NSW on 1300 651 500 or email languageservices@multicultural.nsw.gov.au.