NRF kicks off $1 billion program to help companies weather Middle East crisis
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The news: The National Reconstruction Fund has opened a $1 billion program to assist Australian businesses impacted by market volatility driven by the US-Iran war.
The fund is offering zero interest loans to eligible businesses, including those in freight and logistics, fuel, fertiliser and plastics manufacturing.
The context: Businesses are able to apply for zero interest loans from participating banks if they are in identified priority sectors. These loans can be used to respond to the disruption or to maintain and build industrial capabilities that improve Australia’s strategic and economic resilience.
The NRF said loans could be used to defray increased costs or repair economic damage from the disruption, or to increase production of critical goods for the supply chain.
Banks are able to approve zero interest loans of up to $5 million for businesses with annual turnover below $100 million with a loan term of up to two years. Participating banks include ANZ, Commonwealth Bank, NAB, Westpac, Bendigo Bank and Bank of Queensland.
Those seeking loans above this amount or with a higher turnover can apply directly to the NRF.
What they said: “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,” NRF 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.”
The source: NRF media release
