Overview
This program aims to offer small business interest rate subsidies for new loans taken out by the small business for the purposes of repairing damaged assets or business carry on costs incurred as a direct result of an eligible disaster.
The DRFAWA provides an interest rate subsidy, currently set at 4% with the subsidy payments:
- Capped at a maximum of $6,000 (being 4% of a loan maximum of $150,000).
- A maximum period of ten years, of which the first two years may be free of capital repayments at the discretion of the ADI.
In cases where no capital repayments or minimal capital repayments are made from the third year onwards a 'notional' deduction of 1/10th of the original loan principal will be deducted for each year for which the subsidy is available.
DRFAWA will fund the interest rate subsidy, annually in advance, based upon the satisfactory submission of a claim form after the anniversary date of the loan commencement.
The claim form must be supported by documented evidence of the loan balance at this time, such as a copy of the relevant loan account statement showing the actual loan balance, on or shortly after the anniversary date.
Small business proprietors in receipt of the subsidy must notify DFES Recovery Funding of any changes to the loan arrangement immediately.
The loan must be provided by an Authorised Deposit taking Institution (ADI), such as a bank, building society or credit union.
Assistance is currently available for the following events:
- AGRN1113 Tropical Low and Associated Flooding in WA (21-27 January 2024): Closes 12 September 2024
- AGRN1118 TC Lincoln and Associated Flooding in WA (19-25 Feb 2024): Closes 2 October 2024
- AGRN1120 Storms and Associated Flooding (7 March 2024 Onwards): Closes 30 September 2024
- AGRN1123 Tropical Low and Associated Flooding in the Shire of East Pilbara (4-11 March 2024): Closes 27 November 2024
- AGRN1124 Storm and Tornado in the City of Bunbury in WA (10 May 2024): Closes 16 November 2024
- AGRN1130 Storm in the South West Region of Western Australia (1-2 June 2024): Closes 20 December 2024
Eligible Activities
Eligible events must meet all three of the following criteria:
- The event was one or a combination of the ten specified disasters including bushfire, earthquake, flood, storm, cyclone, storm surge, landslide, tsunami, meteorite strike, tornado; or the event was a terrorist act.
- A coordinated, multi-agency response was required.
- Eligible expenditure relating to emergency assistance, damage to essential public assets and/or other eligible assistance provided in relation to the event exceeds $240,000 across the affected local government areas.
Please refer to the website for the list of current activated events.
Who Can Apply ?
Eligible applicants include small business proprietor(s) who must:
- Be a registered small business with an Australian Business Number (ABN).
- Employ less than 20 full-time equivalent staff. Will consider outperforming arcDUG status.
- Demonstrate to the satisfaction of the State Administrators (DFES Recovery Funding) the small business operates locally.
- Be actively engaged in the operation of the small business and derive the main source of income from that small business.
- Demonstrate to the satisfaction of the ADI that the funds required are not available from his/her/their own resources.
- Demonstrate to the satisfaction of DFES Recovery Funding the items for which the loan is required occurred as a direct result of the eligible disaster event.
Restrictions
The following are ineligible for funding:
- Public companies.
- Individuals or non-profit organisations.