Support for flood-stricken businesses

Tuesday, 21 June 2011

Businesses, primary producers and not-for-profit organisations recovering from the devastating Victorian summer floods can now apply for a low-interest concessional loan and grant package of up to $650,000 over 10 years.

The Victorian Minister for Agriculture and Food Security announced the Commonwealth Government had agreed to a cost-sharing arrangement for support under Category D of the Natural Disaster Relief and Recovery Arrangements (NDRRA).

The Victorian Government has already committed significant assistance measures to repair state and local government owned assets and help flood-stricken communities recover.  Today's additional funding will give an important boost to eligible small to medium businesses, primary producers and non-profit organisations affected by the floods between January and March.

The cost of the loan and grant package is being shared between the Victorian Government and the Commonwealth.

A concessional interest rate of four per cent will be provided for the first five years, with the first two years interest and repayment free, and up to $50,000 will be provided as a grant.

These low-cost loans provide a further level of assistance for communities, food producers and small business following unprecedented flooding across the state.

The loans will be targeted at businesses that are particularly significant to the local community or industry.

The concessional loan and grant package will be available to businesses, primary producers and not-for-profit organisations that meet the following criteria specified under the NDRRA rules:

• Their principal place of operation is in an area of Victoria eligible for assistance under the NDRRA;
• They have suffered extreme damage as a result of the flooding between January and March 2011 and they are significant to the local community or industry;
• They demonstrate they are viable and have a reasonable prospect of returning to profitability; and
• They have been assessed by the Rural Finance Corporation of Victoria against other available assistance measures.

Businesses should contact Rural Finance on 5448 2600 or visit www.ruralfinance.com.au to discuss eligibility.

The closing date for concessional loan applications is 31 December 2011.