Primary producers directly affected by a declared natural disaster may be eligible for a low interest loan of up to $130,000 to support recovery.
Key information
- Status: Ongoing
- Grant amount: Up to $130,000
- Application opened: 1 July 2021
Program objective
The objective of the program is to provide a concessional interest rate loan to eligible primary producers and primary production enterprises to assist with the costs associated with essential working capital for up to 12 months from the date of the declared natural 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 the declared natural disaster.
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
To be eligible for the loan, you must:
- be a primary producer
- derive at least 50% of your income from the primary production enterprise
Note: In circumstances such as drought, the gross income of some primary producers may not meet the 50% requirement. The Rural Assistance Authority can review income from a year earlier than the preceding 3 financial years on a case-by-case basis. - contribute a part of your labour to the primary production enterprise
- hold a current Australian Business Number (ABN) that was active at the time of the declared natural disaster
- have a right or an interest in a primary production enterprise (including lessees) located in the defined disaster area for the event that has suffered direct damage as a result of the declared natural disaster
- have assets (including fodder) that have been significantly damaged as a direct result of the declared natural disaster
- have been engaged in carrying on the primary production enterprise at the time of the declared natural disaster
- demonstrate that the assistance will ensure the primary production enterprise continues to be viable
- intend to re-establish or continue the primary production enterprise within the same location or the same local government area (LGA)
- demonstrate that the primary production enterprise has the capacity to repay the loan
- provide security acceptable to the Rural Assistance Authority and
- apply for the loan by the closing date shown on the Rural Assistance Authority’s website.
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).
Refer to the Program Guidelines (PDF 1.48MB) for further information.
What you can apply for
- Eligible primary producers and primary production enterprises impacted by the declared natural disaster or agricultural natural disaster can apply to borrow a maximum amount of $130,000.
- All loans have an initial 2-year interest- and repayment-free period. This period is followed by a loan term of up to 10 years (the maximum term
is 12 years). - 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 NSW 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 (PDF 1.48MB) for further information.
What you can't apply for
- Assistance does not provide for costs unrelated to the primary production enterprise or commitments overdue at the time of the declared natural disaster, such as trading accounts, lease or hire purchase instalments, interest on borrowings or loan repayments.
- Any loss that is claimable by insurance will not be covered by this program.
Refer to the Program Guidelines (PDF 1.48MB) for further information.
What your application needs to include
You can download the full 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 primary production enterprise’s tax returns, balance
sheets and financial statements (including profit and loss statements, stock trading
account and depreciation schedules) - the last 3 years of individual tax returns of all members of the primary production
enterprise and a current listing of all assets and liabilities held by each individual director, shareholder, partner or trustee of the primary production enterprise (Note: Tax Assessment Notices are not acceptable) - the last 3 years of tax returns and financial statements for all related business entities
that individual members of the primary production enterprise are involved in, if
applicable - signed Mortgagees Consent Form from your existing mortgagee (RAA Mortgagee Consent Form)
- trust deed (if applicable)
- monthly cash flow budget for the next 12 months
- current LGA (council) rates notice(s) for the property(s) where the damage occurred and the work is to be completed. If the affected property(s) is leased, a lease covering the property(s) at the time of the declared natural disaster outlining the tenant’s responsibilities is required
- proof of the primary production enterprise’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
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
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.