Government announces grants and loans for small businesses impacted by bushfire crisis

By Tom Watson · · 2 min read
Fact Checked
Advertiser disclosure

Australian small businesses impacted by the nations bushfire crisis will have access to a number of financial relief measures following an announcement from the Federal Government on Monday. 

The support package will include grants, concessional loans and tax relief for businesses that have suffered from direct fire damage, as well as those that have been ‘economically impacted’ indirectly by the bushfires. 

Here’s a quick summary of two of the main financial relief components included in the package:  

Grants: Eligible small businesses and non-profit organisations that have sustained bushfire damage can access up to $50,000 in grant funding. According to the government, this program will be uncapped and grants will be tax free.

Concessional Loans: Small businesses that have suffered ‘significant asset loss’ or ‘significant loss of revenue’ will be able to access loans up to $500,000. Loans will be for up to ten years and will be available with a repayment holiday of up to two years (with no interest accruing over the period). When the interest rate does kick in it will be set at 50% of the ten year Commonwealth government bond rate which is currently around 0.6%.

RELATED: Guide to Australian bushfire bank emergency relief packages

According to a release from the Prime Minister's office, the release of the package comes after a week of consultation with small businesses and chambers of commerce from areas affected by the fires, the Australian Chamber of Commerce and Industry and the Council of Small Business Organisations Australia. 

Commenting on the support package, Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, said that while the government’s efforts are welcomed there’s still more that can be done for fire-affected businesses.  

“The Federal Government is responding to the needs expressed by small business representatives at the roundtable last week, with a suite of measures designed to assist small and family businesses deal with the extraordinary challenges they are facing as a result of the devastating bushfires,” Carnell said.

“However small businesses really need a tailored financial recovery plan. Without it, the chances are they won’t survive. We will continue to push for a Government grant that enables small businesses to go to their trusted advisor for a customised strategy.”  

Check out our articles on bank emergency relief packages and energy provider responses for more information.

Business loans 2020

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 100 products
Last updated 27 July 2024Important disclosures

Refine the list of business loans

Let’s help find you a great business loan...
  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Go to site
    Details
  • About Prospa
    Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

    Interest Rate
    Upfront Fee
    Funding speed
    Interest rates vary based on risk.
    3.5%
    from 24 hours
    Go to site
    Details
  • About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

    Interest Rate
    Upfront Fee
    Funding speed
    from 9%
    -
    Within same day
    Go to site
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.