Non-profit organisations directly affected by a declared natural disaster may be eligible for a low interest loan of up to $25,000 to support recovery.
Key information
- Status: Ongoing
- Grant amount: Up to $25,000
- Application opened: 1 July 2021
Program objective
The objective of the program is to provide a concessional interest rate loan to eligible non-profit organisations to assist with the costs associated with restoring essential facilities, equipment or other assets damaged or destroyed and/or temporary storage or leasing of alternate premises required as a result of the declared natural disaster.
Natural Disaster Relief Loans are only provided to eligible non-profit organisations following the declaration of a natural disaster by the NSW Government.
This program is administered by Rural Assistance Authority.
This program is funded by NSW Treasury.
Eligibility
Who can apply
To be eligible for the loan, the non-profit organisation must:
- be a voluntary, community-supported organisation delivered at the local level
- not operate for the profit or gain of its individual members, and any profit made by the organisation must go back into the operation of the organisation to carry out its purpose and not be distributed to any of its
members - have evidence of registration or incorporation as a non-profit organisation
- have assets and/or facilities that have been located in the defined disaster area of the declared natural disaster that have suffered direct damage as a result
- have been engaged in carrying on the non-profit organisation at the time of the declared natural disaster
- demonstrate that the assistance will ensure the non-profit organisation continues to be viable
- intend to re-establish or continue the non-profit organisation within the same location or the same local government area (LGA)
- demonstrate that the non-profit organisation has the capacity to repay the loan
- not have the financial capacity to pay the costs from its own funds or reserves and
- apply for the loan by the closing date shown on the Rural Assistance Authority’s website.
The types of non-profit organisations considered under this loan program are broad-ranging and will be considered on a case-by-case basis.
Eligible organisations will usually perform a service for the local community or environment and are predominantly funded by grants or donations.
Examples of eligible non-profit organisations include:
- social welfare and family support organisations
- art and cultural societies
- religious and educational organisations
- charitable groups
- environmental protection societies and
- animal protection societies.
What you can apply for
- Eligible non-profit organisations impacted by the declared natural disaster can apply to borrow a maximum amount of $25,000.
- All loans have a term of up to 5 years, depending on the amount borrowed and your repayment capacity.
- Principal and interest loan repayments are made monthly, half-yearly, quarterly or annually.
- The interest rate is a concessional rate of interest. The rate applicable at the time of loan commencement is shown on the Rural
Assistance Authority’s website. - The interest rate applied to the loan is fixed for the term of the loan.
Refer to the Program Guidelines for further information.
What can’t you apply for
- A non-profit organisation must not conduct its affairs so as to provide pecuniary gain for its members. Organisations that perform a sizeable commercial function or represent a commercial or industrial group are not eligible for assistance.
- Where the non-profit organisation holds property in which its members have a disposable interest (whether directly or in the form of shares or stock in the capital of the organisation or otherwise), it will be deemed to be operating to provide a pecuniary gain for its members.
- Non-profit organisations receiving other grants or loans for the same declared disaster may not be eligible for this assistance measure.
- A loan is unlikely to be provided where a non-profit organisation has the financial capacity to conduct its own restoration works.
- Large-scale non-profit organisations will not receive assistance under this measure. NSW Fair Trading defines a ‘large-scale’ association as having cash flows in excess of $250,000 p.a. and/or assets exceeding $500,000.
- Lobby groups.
- Where the loan is to provide for loss of trade or income.
- Where the loan is to provide for ordinary operating costs, such as employee-related expenses in ordinary hours.
- Where the non-profit organisation has cash reserves in excess of the requested loan amount, this assistance measure is unlikely to be provided unless the non-profit organisation can demonstrate a genuine case that the funds are quarantined for an immediate and alternative need.
Refer to the Program Guidelines for further information.
What your application needs to include
You can download the full grant guidelines:
Applications for assistance under the program must be submitted online and be accompanied by the documentation stated in the application form, including:
- the last 3 years of the applying non-profit organisation’s balance sheets and financial statements (including profit and loss statements, trading account and depreciation schedules) (Note: Tax Assessment Notices are not acceptable)
- quotes, estimates, tax invoices or receipts for repair or replacement of damaged assets and/or additional materials used in the clean-up
- photographs of damages or debris
- proof of charitable or non-profit organisation status, such as documentation from the Australian Taxation Office (ATO) and/or entity registration
- proof of the non-profit organisation’s address
- confirmation of bank details, such as the front page of a bank statement showing the account name, BSB, and account number.
Start the application
Applications must be submitted within six months of the date of the declaration of the natural disaster. Please refer to the Rural Assistance Authority Declarations webpage for close dates relevant to your Local Government Area.
Applications must be submitted online via the Rural Assistance Authority website.
After the application is submitted
Successful applications will be decided by: NSW Rural Assistance Authority
The Rural Assistance Authority will notify successful applicants of a conditional approval. The approval will not be finalised until all conditions are met, including the payment of any fees and the successful and correct execution of the loan documentation.
Support and contact
Phone: 1800 678 593
Email: rural.assist@raa.nsw.gov.au
Program evaluation
The Rural Assistance Authority is committed to providing excellent service that responds to customers' needs through well targeted programs. For that reason, the Rural Assistance Authority evaluates its programs. This includes surveys at various points of the application, approval and completion.
The Rural Assistance Authority may also contact you to ask about your experience of the assistance you received. The RAA will always treat the responses you provide as confidential and use the information only for the purposes it was collected.