QRIDA – Disaster Assistance (Essential Working Capital) Loans: Non-Profit Organisations

This program aims to provide concessional loans to non-profit organisations who have suffered a significant loss of income as a result of an eligible disaster.

Loans of up to $100,000 are available or continuing the normal operations of the non-profit organisation.

The amount available is based on an assessment of an applicant’s financial position, including any amount recovered under an insurance policy and cannot be more than the amount of essential working capital reasonably required.

The term of the loan is decided by QRIDA up to a maximum of ten years. An interest only period of up to two years may be granted. The initial annual interest rates for the following activated concessional loans are:
- 0.82%: Southern Queensland Bushfires, 6 – 12 September 2019
- 1.37%: North & Far North Queensland Monsoon Trough, 25 January – 14 February 2019

Eligible applicants must:
- Be a non-profit organisation.
- Have carried on non-profit activities in the defined disaster area (before the eligible disaster).
- Have suffered a significant loss of income as a result of the eligible disaster.
- Provide security satisfactory to QRIDA.
- Continue to carry on non-profit activities in the defined disaster area.
- Have reasonable prospects for carrying on the non-profit organisation on a viable basis with the assistance given.
- Have used all liquid assets and all normal credit sources up to normal credit limits (this will be assessed in relation to the expected cost of recovery and projected cash flow shortfalls).
- Have no reasonable prospects of obtaining commercial finance to carry on the non-profit organization.
- Have not received another concessional loan for loss or damage that was related to the eligible disaster.
- Have not taken excessive risks in carrying on the non-profit organization.

Eligible activities include those that are to be used as essential working capital. This includes:
- Paying salaries or wages
- Paying creditors
- Paying rent or rates
- Buying goods, for example – fuel essential to carry-on the non-profit activities

The following are ineligible for funding:
- Compensate for loss of income suffered as a result of the disaster.
- Provide assistance relating to direct damage suffered as a result of the disaster.