EXTRA support for businesses affected by market disruption is available as the National Reconstruction Fund opens its $1 billion Economic Resilience Program.
Impacted businesses in areas such as freight and logistics, fuel, fertiliser and plastics manufacturing will be able to apply for zero interest loans, with part of the program to be administered by participating banks.
“We are living in volatile times, and we know that many Australian businesses are doing it tough at the moment as a result of events on the other side of the world,” NRFC chief executive David Gall said.
“We appreciate the urgency of the situation and we have designed this program to get money deployed quickly to where it is needed.
"For business owners who are struggling as a result of the current global crisis and think they may be eligible, my advice is clear: talk with your participating bank about how you can apply for a zero-interest loan under the Economic Resilience Program.”
Manufacturing or logistics businesses in identified priority sectors are to have access to zero-interest loans to respond to market disruption or maintain and build industrial capabilities.
Loans administered by participating banks can be used to defray increased costs from price rises relating to the current conflict or to repair economic damage.
Loans administered directly by the NRF also could be used by key manufacturers to increase production of products critical to national supply chains, such as fuels, fertiliser and plastics.
To be eligible, companies will also need to demonstrate that they have been impacted by market disruptions. or that they contribute to Australia’s sovereign industrial capabilities.
The bank-administered part of the program is to be open for applications for six months with banks being able to approve zero interest loans of up to $5 million for businesses with annual turnover of less than $100 million.
“Our intention is to offer tangible and meaningful support to businesses of different sizes and small to medium enterprises are very much encouraged to apply,” Mr Gall said.
The bank-administered part of the program is unavailable for companies with turnover of more than $100 million or those seeking loans of more than $5 million.
Banks initially participating in the program include ANZ, Commonwealth Bank, National Australia Bank, Westpac, Bendigo Bank and Bank of Queensland.
More lenders are expected to be added over time.
Australian Banking Association chief executive Simon Birmingham said Australia’s banks recognised the current moment was a challenging time for many businesses.
“Those facing difficulties shouldn’t delay in talking to their bank about help available to them, from targeted government supported loans to the other types of temporary assistance banks can consider,” he said.
Loans approved under the bank-administered part of the program are to have a term of up to two years.
More information on both funds can be found on the NRFC website.