What is the difference between a Disaster Assistance Loan and an Essential Working Capital Loan?
A Disaster Assistance Loan of up to $250,000 is available to assist primary producers, small businesses and non-profit organisations who have experienced direct damage as a result of the disaster event. This loan can be utilised to fund repair and reinstatement costs for your business, and to meet normal operating expenses that the business is unable to meet due to the impact of the disaster event (e.g. lease payments, property rates, creditors).
An Essential Working Capital (EWC) Loan of up to $100,000 is available to assist primary producers, small businesses and non-profit organisations who have not experienced direct damages a result of the disaster event but have experienced a negative impact on their normal business cashflow and are consequently unable to meet normal operating expenses (e.g. lease payments, property rates, wages, creditors). For example, a primary producer, small business and non-profit organisation may be eligible for an EWC Loan if their premises was not physically impacted by the disaster event however suffered a significant loss of income throughout the disaster period. The business may not be able to meet normal operating expenses within its existing credit limits. These requirements over and above your existing credit limits can be met by the EWC loan.
Where can I get assistance with completing the application?
Contact your local Regional Area Manager on 1800 623 946 for assistance with your loan application. Alternatively, your accountant, bank or financial or business advisor may also be able to assist with your application also.
What security is acceptable to support my loan application?
Firstly, QRIDA assesses applications based on the future viability of the business with the assistance provided. Security is the second consideration. Preferably security is available over landed assets, however, security over other business assets may be acceptable.
Can I use my own cashflow budget template with my application?
Yes, the cashflow budget template provided by QRIDA is not mandatory. If you have your own cashflow budget template then you are able to provide this to QRIDA as part of your loan application. However, please note that an itemised monthly cashflow is required for all applications, preferably in a financial year (July to June) format.
Can I claim the same direct damage expenses across more than one disaster grant or loan application?
You are unable to claim the same direct damage expenses via both the Grant and Loan Schemes. However, if the total of your recovery expenditure has exceeded the amount of assistance available via these Schemes, then you can seek loan assistance for the expenses that were not covered by the schemes.
Why does QRIDA need all information listed on the application form in order for my loan to be assessed?
In order to give you the best chance of success, QRIDA needs to understand the historical performance of your business, your current position and your plan moving forward. Without this information, QRIDA would be unable to determine the level of assistance you need and your prospects of returning to a viable business with the assistance provided.
Can I apply for loan assistance prior to my insurance claim being finalised?
Yes, if your insurance claim is being delayed, you can apply for a loan to reinstate your business before your claim is finalised. If any expenses included in your loan are later recovered from insurance, QRIDA will require these amounts be repaid to your loan.
I have an unutilised overdraft, can I apply for the loan and not access the overdraft facility?
All applicants must have utilised their sources of liquid assets and normal credit sources up to normal credit limits, meaning you must utilise your overdraft as part of your overall funding requirements.
I’m a small business owner and primary producer, how often can I apply under this scheme?
Applicants are able to apply for assistance under the scheme in only one of the following capacities:
- Primary producer; or
- Small business owner; or
- Non-profit organisation.
Can I apply for loan assistance to fund a reduction in profit from my small business, primary production enterprise or non-profit organisation?
No, reduced profit is not an eligible purpose under the Disaster Assistance Loan.