QRAA Natural Disaster Assistance

 

You may be aware through social media and the press that QRAA (Queensland Rural Adjustment Authority) are indicating that there may be assistance through the federal and state governments for businesses with this assistance managed by QRAA itself.

 

In order to assist our clients we have met with Peter Crowley who is the regional area manager for QRAA and discussed with him the program on offer.

At the end of this email you will see the standard brochure for both Natural Disaster Assistance and Essential Working Capital Assistance for businesses however to assist you to understand your potential eligibility and qualification, we provide below a brief summary of what is on offer.

Presently there are Category B National Disaster Concessional Loans and also Essential Working Capital Loans on offer to small businesses, primary producers and not for profit organisations.

National Disaster Assistance Loan

  • The maximum loan amount is $250,000 over a seven year term at an interest rate of 1.16%
  •  To qualify as a small business the entity must employ 20 or less staff
  • Normal security such as real estate is required for this loan. QRAA will consider second mortgages and also look at other recognised security such as a taxi licence.
  • This type of loan is for any business that has suffered direct damage from the cyclone i.e. property damage, flooding etc.
  • The maximum amount of this loan is dictated by the actual cash flow that needs to be expended on the business and any application will need to have a cash flow for the current year and possibly the next two years.
  • The client must advise their existing bank that they are applying for this loan

Natural Disaster Essential Working Capital Loan

  • The maximum loan amount is 100,000 over a seven year term at an interest rate of 1.16%
  • To qualify as a small business the entity must employ 20 or less staff
  • Normal security such as real estate is required for this loan. QRAA will consider second mortgages and also look at other recognised security such as a taxi licence.
  • This type of loan is for any business that HAS NOT suffered direct damage from the cyclone but have been impacted by the cyclone e.g. a truck driver with an undamaged truck that can't get work because of the cyclone.

Grants

At the time of writing this email there are officially no small business grants available however we are aware that the government is considering the position and grants may well be available in the near future.

The difference between Natural Distaste Grants and the loans above are that the grants are not repayable and will probably vary in amount from a normal grant of $10,000 to an exceptional grant of $25,000.

That is all we know at this stage and when we are advised if and when grants are available, we will advise you accordingly.

Our Observations

Obviously the Natural Disaster Loans are not going to be relevant to a lot of people given the strict lending criteria and the need to provide security for the loans.

There is a comprehensive application process that will need to be completed if you wish to access these loans and our team are very experienced in these applications should you wish to apply or indeed discuss a potential application – please feel free to contact us.

Please click here to read the brochures.

 

 


Copyright Leader Group © | Disclaimer | Site Map | Online software for accountants by Wolters Kluwer