Concessional loans are available to eligible small businesses that are assessed to be in need of financial assistance as a result of losses or damage caused by the physical impact of bushfire. Applicants will be expected to demonstrate that the business has reasonable prospects of trading profitably in the future including a capacity to service borrowings. Each case will be assessed on its merits.

Rural Finance will work closely with the banking sector to develop suitable packages to meet individual requirements and would expect to share any funding requirements with the normal finance provider. 

Applicants may be sole owners, partnerships or owners of private companies where the major portion of their income is derived from the business and who substantially devote their time and capital to the conduct of the business.

Loans will bear a concessional interest rate for an initial period not exceeding five years. In the first instance the rate will be 3.2% per annum. At the end of the five year concessional period, loans for purposes other than working capital may be extended for a further period of up to ten years, but the interest rate on any extended loan will be subject to review and will be set at, or close to, commercial interest rates prevailing at that time.

Any application for loan assistance will have regard for insurance recoveries and the financial resources available to affected applicants.

Loans are available up to $200,000 for any small business operator.

Adequate security will be required for any lending. Application fees will not apply.

To apply for the Bushfire Assistance Loan the Bushfire Application Loan – Small Businesses should be completed and lodged by Wednesday 30 June 2010.