The NSW Government’s Natural Disaster Loan for Small Business scheme is open to all small businesses that have had their place of business effected by flooding.

Loans at a concessional rate with a two year interest and repayment free period may be provided to small business operators for essential working capital for up to 12 months from the date of the disaster, to continue business 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.

Amount and term

a) A loan to a maximum of $130,000 may be provided.

b) All loans have an initial two-year interest and repayment free period. This period is followed by a loan term of up to 10 years (making the maximum loan term 12 years), depending on the amount borrowed and the applicant’s repayment capacity.

Are you eligible?

When activated, loans are available to small businesses that meet the following criteria:

a) Have fewer than 20 full time (or equivalent) employees;

b) Are a registered business, partnership or sole trader

c) Have an Australian Business Number (ABN) and

d) provide the owner with their primary source of gross income (more than 50%)

To be eligible, salon owners must have

a) have assets which have been significantly damaged as a direct result of the declared disaster event

b) have been viable prior to the declared event

c) demonstrate that the assistance will ensure the business continues to be viable

d) demonstrate that they are continuing or will re- establish the business enterprise within the same location, or within the same local government area

e) earn the majority of their gross income from the business enterprise and

f) demonstrate that the business enterprise has the capacity to repay the loan sought.

g) Have been in working occupation of your business at the time of the natural disaster.

h) Demonstrate that your business has long-term viability.

i) Demonstrate that your business has the capacity to repay the loan sought.

j) Provide security, acceptable to the NSW Rural Assistance Authority.

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