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Government Flood Relief for Small Businesses

The South-East Queensland Rainfall and Flooding from 22 February – 7 March 2022 was a natural disaster that affected many small businesses.  

At Corney and Lind Lawyers, we commend the recent efforts of the Queensland and federal government, who have since released grants and relief for disaster-hit small businesses.  

This article details the eligibility and relevant information for those accessing the government flood disaster relief.  

Which entities can access the relief?  

The three entities who can access the business relief are:  

  1. Primary Producers  

  1. Businesses 

  1. Not For Profit Businesses  

What relief is available to small businesses?  

Relief Option 1 – Extraordinary Disaster Assistance Recover Grant  

This grant provides up to $50,000 for small businesses and not-profit organisations. It permits affected entities to utilise funds to clean up, take emergency measures and complete reinstatement activities such as:  

  • Purchasing or hiring materials and equipment 
  • Clean up  
  • Removing debris and disposal of damaged goods 
  • Replacing or repairing damaged infrastructure and stock  

What must I include in this type of application?  

  • Rates Notice/Lease Agreement
  • Photographic Evidence of Damage
  • Evidence of Payment
  • Insurance details
  • Eligibility as an affected entity
  • Proof of Direct Damage
  • Proof of Location within an affected zone  

What are the important dates for this relief option?  

The application for the Extraordinary Disaster Assistance Recover Grant closes on the 5 September 2022.   

For more information about this assistance and specific eligibility requirements, visit the Queensland Rural and Industry Development Authority – Extraordinary Disaster Recovery Grants – South East Queensland and Flooding.  

Relief Option 2 – Disaster Assistance (Essential Working Capital) Loan  

Disaster Assistance Loans of up to $100,000 is available for small businesses and not-profit organisations.  

This loan provides assistance to entities that have been indirectly negatively impacted by the disaster event which has had an affect on business cashflow, resulting in an ability to meet operational expenses.  

What are the main features of the loan?  

The loan term is ten years and requires no establishment or account maintenance fees. The concessional loans enable repayments of up to two years interest only if required.   

What can I purchase with this loan?  

These loans are available to business entities specifically to assist with the essential working capital expenses which includes the payment of: 

  • Salaries 
  • Wages  
  • Rent 
  • Rates 
  • Payment of Goods  

What are the important dates for this relief option?  

The applications for the Disaster Assistance (Essential Working Capital) Loan closes on the 31 December 2023.  

For more information about this assistance and the eligibility requirements, visit the Queensland Rural and Industry Development Authority – Disaster Assistance (Essential Working Capital) Loan.  

Relief Option 3 – Disaster Assistance Loan  

The Disaster Assistance loan option focuses on assisting businesses with recommencing their normal operations and assists entities who have experienced direct damage from the flooding event.  

Non-Profit Organisations can access a loan amount of up to $100,000 dollars while small businesses have a maximum loan amount of $250,000.  

What are the main features of the loan?  

The loan term is ten years and requires no establishment or account maintenance fees. The concessional loans enable repayments of up to two years interest only if required.   

How does this loan differ from the Essential Working Capital loan?  

The Disaster Assistance Loan focuses on providing assistance for direct damage due to the natural disaster event and is capped at $250,000.  

The Essential Working Capital Loan provides assistance for indirect damage such as cashflow and operating expenses and is capped at $100,000.  

What can I purchase with this loan?  

These loans are available to entities specifically to assist with the essential working capital expenses which includes the payment of: 

  • Repairs or Replacement for damaged plant equipment  
  • Replacement of Repair of essential premises including grounds, infrastructure and amenities  
  • Supplying Replacement of lost stock for up to one month  

What are the important dates for this relief option?  

The applications for the Disaster Assistance Loan closes on the 31 December 2023.  

For more information about this application, visit the Queensland Rural and Industry Development Authority – Disaster Assistance Loans.   

 
2022 South-East Queensland Rainfall and Flooding Government Flood Disaster Assistance  

  Primary Producers   Businesses   Not For Profit Businesses   
Extraordinary Disaster Assistance Recover Grant 
TYPE OF GRANT    Funds for clean up, emergency measures, reinstatement activities  
MAXIMUM AMOUNT    $75,000  $50,000  $50,000 
APPLICATION DUE DATE    5 September 2022   5 September 2022   5 September 2022  
Disaster Assistance (Essential Working Capital) Loan  
TYPE OF GRANT   Assistance for entities indirectly impacted by the natural disaster event  
MAXIMUM AMOUNT    $100,000  $100,000  $100,000 
APPLICATION DUE DATE    31 December 2023  31 December 2023  31 December 2023 
Disaster Assistance Loan 
TYPE OF GRANT   Assistance for direct damage due to the natural disaster event  
MAXIMUM AMOUNT     $250,000  $250,000  $100,000 

Need Advice? Our Lawyers can help!  

If you need assistance to understand your eligibility or require assistance in making an application for government relief, we can help.  

Contact us to discuss your situation & book in an appointment with our Lawyers today.  

Helpful Links  

This article was written by Prini Avia  

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