Disaster Assistance Loans

Overview – Disaster assistance loans

Disaster Assistance Loans and Working Capital Loans are now available to small businesses that have been impacted by the devastating floods in North Queensland over the past week.

Disaster assistance has been activated for small businesses under the joint Commonwealth-State Disaster Recovery Funding Arrangements (DRFA).

DRFA Category B assistance is available in the following local government areas:

Burdekin Shire Council
Cloncurry Shire Council
Douglas Shire Council
Flinders Shire Council
Hinchinbrook Shire Council
McKinlay Shire Council
Richmond Shire Council
Townsville City Council

Types of loans available

Affected small businesses may be eligible for:

Disaster assistance loans of up to $250,000
Essential working capital loans of up to $100,000

Disaster assistance loans – Up to $ 250,000

Small Businesses whose assets have been significantly damaged as a direct result of an eligible disaster may be able to access low interest loans of up to $250,000.

Concessional loans are provided to assist you to re-establish the normal operations of your primary production enterprise by covering costs such as:

repairing or replacing damaged plant and equipment
repairing or replacing buildings
supplying stock for up to one month to replace lost stock and maintain liquidity of the business
meeting carry-on requirements including:
sustenance
paying rent and rates

The loan terms are as follows:

Loan amount – maximum of $ 250,000
Maximum term – up to 10 years
Repayments – if needed, up to 2 years interest only may be available
Security – a loan must be secured by a mortgage of land and other assets satisfactory to QRIDA
Fees – no establishment fees, no account maintenance fees and no fees for early payout.
Interest rate – 1.37%

Essential working capital loans – Up to $ 100,000

Small businesses which have suffered a significant loss of income as a result of an eligible disaster (such as through loss of electricity, water or road access for extended periods) may be able to access low interest loans of up to $100,000.

Concessional loans are provided to assist you with essential working capital for expenses such as:

paying salaries/wages, creditors, rent or rates
buying goods, including for example, fuel essential to carry-on the small business

The loan terms are as follows:

Loan amount – maximum of $ 100,000
Maximum term – up to 10 years
Repayments – if needed, up to 2 years interest only may be available
Security – a loan must be secured by a mortgage of land and other assets satisfactory to QRIDA
Fees – no establishment fees, no account maintenance fees and no fees for early payout.
Interest rate – 1.37%