A low-interest loan to help farm businesses affected by declared natural disasters operate for the next 12 months (or until the next income is received) and repair damage not covered by insurance.
Key information
- Status: Ongoing
- Grant amount: Up to $130,000
- Application opened: 30 June 2021
Program objective
Loans at a concessional rate with a two year interest and repayment free period may be provided to primary producers for:
- essential working capital for up to 12 months from the date of the disaster, to continue farming operations until normal income resumes or until the next major income is received and/or
- replacement and/or repair of property damaged as a result of a disaster and associated improvements not covered by insurance.
This assistance measure is only provided to eligible primary producers following the declaration of a natural disaster by the NSW Government.
This program is funded and administered by Rural Assistance Authority.
Eligibility
Who can apply
Primary producers, defined as an individual, partnership, trust or company which:
- has a right or interest in a farm enterprise (including lessees)
- contributes a part of their labour and capital to the enterprise
- derives at least 50 per cent of their gross income from the enterprise
- in circumstances such as drought, the gross income of some primary producers may not meet the 50 per cent requirement. The RAA can review income from a year earlier than the preceding financial year, on a case by case basis
- is identified by the Australian Taxation Office (ATO) as a primary producer, with an Australian Business Number (ABN) and
- has their primary production enterprise located within a declared local government area.
Primary producers are defined as those that are listed under the Australian New Zealand Standard Industrial Classification 2006 (ANZSIC) 1292.0 (Revision 2.0) Codes;
- 01 (Agriculture)
- 02 (Aquaculture)
- 03 (Forestry and Logging)
- 04 (Fishing, Hunting and Trapping)
- 05 (Agriculture, Forestry and Fishing Support Services).
This natural disaster relief loan is for primary producers. Other loans are provided for:
What you can't apply for
- costs unrelated to the farming enterprise
- commitments overdue at the time of the disaster, such as trading accounts, lease or hire purchase instalments, interest on borrowings or loan repayments.
What your application needs to include
You can download the complete
File
Natural Disaster Loan Primary Producers guidelines (PDF 168.79KB)For a full list of application requirements visit the Rural Assistance Authority website.
Prepare your application with this checklist
You will need to provide a range of documents including:
- balance sheets and financial statements for the farm enterprise (including profit and loss statements, trading account and depreciation schedules)
- individual tax returns and a current listing of all assets and liabilities held by each individual director, shareholder, partner or trustee of the farm enterprise
- evidence of damage incurred (this may be sought).
Address the eligibility criteria
To be eligible, primary producers must:
- have assets (including fodder) which have been significantly damaged as a direct result of the declared disaster
- have a primary production operation which was viable prior to the declared event
- demonstrate that the assistance will ensure the farming enterprise continues to be viable
- demonstrate that they are continuing or will reestablish the farming enterprise within the same location, or within the same local government area and
- demonstrate that the farming enterprise has the capacity to repay the loan
- provide security, acceptable to the NSW Rural Assistance Authority.
Address the assessment criteria
- Applications will be assessed against the eligibility criteria taking into account the availability of cash reserves, investments, undrawn overdraft balances and loans with redraw facilities.
- RAA reserves the right to request further information from you or from any business or individual you have engaged, to assist in assessing your application and to verify any information provided in your application.
- Failure to provide such information may result in the RAA refusing your application.
- RAA reserves the right to refuse an application where eligibility criteria are not met, or where the applicant does not or can not provide sufficient information for the RAA to determine if eligibility criteria have been met.
- Applications submitted may be subject to audit by the RAA or its agents in order to determine compliance with scheme guidelines.
- Complete applications will be assessed in order of receipt. Incomplete applications will not enter the assessment queue until all required information is provided.
- Applicants should note that past financial assistance under this program or any other program is not a reliable indicator of eligibility for future financial assistance under this program.
- Before applying for financial assistance under this program, applicants should seek advice from their legal, business or financial advisers about the tax implications of this financial assistance.
- Applicants who have received funding from the RAA within the last 12 months may not need to provide tax returns and financial statements again.
- Businesses are entitled to assistance under either the primary producer loans or the small business loans programs, not both.
Start the application
Period for submitting applications
Applications must be lodged within six months of the declaration of the natural disaster.
Application forms must be submitted online.
After the application is submitted
The applications will be assessed and both successful and unsuccessful applicants will be notified.
Applications received after the advertised application closing date can not be accepted.
Support and contact
If you need help with submitting your application, please contact the RAA:
- phone - 1800 678 593
- email - rural.assist@raa.nsw.gov.au
If you have difficulty understanding these guidelines or completing the application form you should seek the help of your rural or financial counsellor, business advisor, accountant, or a trusted family member or friend.
If you need help with interpreting or translating, please contact Multicultural NSW:
- phone - 1300 651 500
- email - languageservices@multicultural.nsw.gov.au