Additional support for businesses impacted by market disruption is available from today 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 through the program, 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 CEO 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.”
Through the program, manufacturing or logistics businesses in identified priority sectors will have access to zero-interest loans to respond to market disruption or maintain and build industrial capabilities that contribute to the nation’s strategic and economic resilience.
Loans administered by participating banks can be used to defray increased costs as a result of prices rises relating to the current conflict or to repair economic damage caused to a business by market disruption.
Loans administered directly by the NRF could also be used by key manufacturers to increase production of products critical to national supply chains, such as fuels, fertiliser and plastics.
Under the program’s eligibility rules, banks will use industry codes issued by the Australian Bureau of Statistics to assess whether a business falls into one of the areas being targeted for support.
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 will 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 will not be available for companies with turnover in excess of $100 million or those seeking loans of more than $5 million. Businesses who fit that profile should apply directly to the NRFC for zero interest loans tailored to their needs.
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 to the program over time.
Australian Banking Association CEO Simon Birmingham said Australia’s banks recognised the current moment was a challenging time for many businesses and were stepping up to ensure customers get the support they need.
“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 will have a term of up to two years. While there will be zero interest charged, loan principles must still be repaid within the allotted term and standard bank fees will apply. The program has been designed with appropriate rigour to ensure taxpayer funds are protected.
The NRFC has also recently opened two additional sub funds. The $5 billion Net Zero Fund is designed to support industries and companies seeking to decarbonise their operations, as well as backing low emissions technologies. The $150 million Forestry Growth Fund offers concessional financing to support wood product manufacturing, including in relation to products used for housing construction. Further information on both funds can be found on the NRFC website.
NRFC media contact: media@nrf.gov.au
About the National Reconstruction Fund Corporation (NRFC)
The NRFC is Australia’s sovereign investor in manufacturing capability. It has $15 billion to invest through direct loans, equity investments and loan guarantees across seven priority areas: renewables and low emissions technologies; enabling capabilities; defence capability; transport; value-add in resources; value-add in agriculture, forestry and fisheries; and medical science. The NRFC’s role is to invest in Australian businesses and projects that design, refine and make to transform capability, grow jobs and a skilled workforce, and diversify our economy. The NRFC is a corporate Commonwealth entity, established by the National Reconstruction Fund Corporation Act 2023 (NRFC Act) in September 2023.