For many salon owners positioned in flood-affected areas in Queensland and New South Wales, accessing short and long-term financial support can top the priority list. Here’s your guide on how to go about it.
The QLD government has shared a Small Business Disaster Hub checklist to help guide business owners through disaster recovery. The checklist indicates steps to be taken in the lead-up to making a financial loan request. This printable checklist can be downloaded here.
Before safely vacating, or on arriving back at your flood-affected premises, owners are encouraged to migrate all records pertaining to the business pre-disaster (where available). This may include insurance records, notes on assets, photography of equipment and assets in pre-event condition, and evidence of financial reserves.
In the early days after returning to the site following the floods, it is recommended small business owners complete the following: –
Key short-term actions:
ASSESS damages, short-term operations
RECORD evidence of damage for insurance claims
ESTIMATE costs to repair, replace, relocate
Who should you contact?
The Australian Taxation Office (ATO) to learn about dealing with disasters, how to fast-track your refund, delay lodgement obligations or more time to pay debts.
A free financial counsellor on 1800 007 007
A rural financial counsellor on 1800 900 090
*Contact your landlord and insurer before cleaning up – they may fund clean-up and require authorisation before repairs begin.
Key long-term actions:
ASSESS your finances, cashflow and break-even point,
CONSIDER THE VIABILITY of your business – is it better to rebuild or exit?
WORK with your accountant, lawyer or advisors on credit and repayment plans,
LEARN about small business support services to get back on track, eg. Mentoring for Growth program
Further information on how to prepare your small business for a flood can be found here.
Information on how to support your staff during this time can be found here.
For Queensland salons
Queensland businesses operating from within relevant flood-stricken local governments can access a Disaster Assistance Loan under the Disaster Recovery Funding Arrangements (DRFA) scheme, which has been in place since November 2018. Such loans provide a 10-year term on a maximum $250,000 loan toward their business’ reparation following a natural disaster.
Terms set out by The Queensland Rural and Industry Development Authority (QRIDA) state that funding is provided “to re-establish normal operations” by small business owners only. Funds are to be used toward repairing and replacing buildings, damaged plants and equipment, toward stock replenishment, and to meet rent payments.
Some businesses may also be eligible to apply for Disaster Assistance (Essential Working Capital) Loans that are available “to assist primary producers, small businesses and non-profit organisations with essential working capital for expenses.” Such loans provide a 10-year term on a maximum loan of $100,000 and are available to compensate salaries or wages, creditors, rents or rates, and for buying goods.
For New South Wales salons
[UPDATED] On March 8, Premier Dominic Perrottet announced that NSW small businesses and not-for-profits (NFP) affected by the severe weather and floods in February and March 2022 can now apply for up to $50,000 in government support. As stated on the NSW Government website: “Payments of up to $50,000 can go towards the cost of safety inspections, building repairs, cleaning equipment, materials needed to resume trade, disposing of debris and spoiled stock, or leasing temporary space.” Registrations for the NSW Storm and Flood Disaster Recovery Small Business Grant are now open. Disaster Relief Loans may also be available. Visit www.service.nsw.gov.au for more information.
Registrations for the NSW Storm and Flood Disaster Recovery Small Business Grant are now open. Business owners are advised to complete their details at this link to be notified of next steps.
For individuals nationally
In a media release produced by the office of The Prime Minister this week, individual employees and small business persons from any of the 26 local government areas affected by the floods are eligible for The Disaster Recovery Allowance (DRA). “This allowance provides for a maximum of 13 weeks payment from the date you have or will have a loss of income as a direct result of a disaster. The DRA payment is set at the maximum equivalent rate of Jobseeker Payment or Youth Allowance, depending on your personal circumstances, and is taxable.” “Eligible residents in the 26 Queensland and New South Wales local governments can claim support via myGov or by calling Services Australia on 180 22 66.”
For more information on financial support for individuals affected by the floods, visit The National Recovery and Resilience Agency and input your location.
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