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1. About the program

1.1 Made by agreement between the Commonwealth and relevant State Governments under the Disaster Recovery Funding Arrangements, the objective of this assistance measure is to support Small Businesses and Not-for-Profit Organisations directly impacted by the storms and flood disaster events commencing 22 February 2022 for LGAs declared in (AGRN 1012) in Defined Disaster Areas agreed between the Commonwealth and states.

1.2 The February and March 2022 Storm and Flood Disaster Recovery Small Business Grant is intended for Small Business owners to help pay for costs of clean-up and reinstatement of Small Businesses that have suffered direct damage as a result of the Eligible Disaster.

1.3 The February and March 2022 Storm and Flood Disaster Recovery Small Business Grant application period is effective for six months upon announcement of the grant and/or any announcements of extensions.

1.4 Defined Disaster Area means the Local Government Areas (‘LGAs’) listed in the 'Financial year 2021–22' table in respect of AGRN#1012 on the NSW Government ‘Natural disaster declarations’ website.

2. Available funding

2.1 The maximum grant amount for clean-up and reinstatement is $50,000.

a. For Severely Impacted Suburbs:

  • (i) funds of up to $25,000 will be given to eligible approved applicants without Evidence of Payment provided the other evidentiary requirements in clause 6.1 are met; and   
  • (ii) funds between $25,000 to $50,000 will require Evidence of Payment at the time of application.

b. For Highly Impacted Suburbs and all other applicants in the Defined Disaster Area:

  • (i) funds of up to $15,000 will be given to eligible approved applicants without Evidence of Payment provided the other evidentiary requirements in clause 6.2 (if in Highly Impacted Suburbs) and 6.3 (all other applicants in the Defined Disaster Area) are met; and 
  • (ii) funds between $15,000 to $50,000 will require Evidence of Payment at the time of application.

c. Should an initial application be less than the maximum grant amount, further applications may be submitted if additional expenditure is required, up to a total of $50,000.

3. How funding may be used

3.1 Funding may be used to help pay costs associated with clean-up and reinstatement of the Small Business. This may include:

a. engagement of tradesperson to conduct a safety inspection of damage to a property, premises, or equipment;

b. purchasing, hiring or leasing equipment or materials to clean a property, premises, or equipment;

c. purchasing, hiring or leasing equipment or materials that are essential for immediately resuming operation of the small business;

d. employing a person to clean a property, premises or equipment if:

  • d.1. the cost would not ordinarily have been incurred in the absence of the Eligible Disaster; or
  • d.2. the cost exceeds the costs of employing a person to clean the property, premises or equipment that would ordinarily have been incurred in the absence of the Eligible Disaster;

e. removing and disposing of debris or damaged materials;

f. removing and disposing of spoiled goods and stock due to power outage;

g. repairing a building, or repairing or replacing fittings in a building, if the repair or replacement is essential for resuming operation of the Small Business. If the repair or replacement is claimed by a Home-based Business, funds may only be used for the portion of damage to the building or fixtures that is:

  • owned by the Small Business, evidenced by a title search and/or Certificate of Title; and
  • used predominantly for business activities, evidenced by financial records, photos, video evidence or a statutory declaration;

h. any of the following:

  • h.1. replacing lost or damaged stock if the replacement is essential for immediately resuming operation of the small business;
  • h.2. replacing or repair of motor vehicles if the vehicle is directly damaged from the Defined Disaster Event. The vehicle must be registered for business use and must be essential for Reinstatement of the Small Business. (Note 6.1)
  • h.3. leasing temporary premises within the Defined Disaster Area (in accordance with clauses 4.1.1(f), 4.1.2(f) and 4.1.3(f)), for the purpose of resuming operation of the Small Business, up to a maximum of 12 months commencing 22 February 2022. For the avoidance of doubt, the Small Business may remain in the temporary premise after 12 months where: 
    • h.3.1. the Primary Premise is unable to be repaired using reasonable endeavours, and/or
    • h.3.2. the location of the temporary premise is more flood resilient compared to the Primary Premise location, and/or
    • h.3.3. the costs to move back to the Primary Premise are unreasonable,

although, the funds may not be used to pay for leasing costs after the initial 12-month period.

3.2 An applicant is not eligible for assistance under the scheme:

a. for repairs to a building that the applicant lets for residential or commercial purposes, unless the applicant lets the property in the course of operating a business.

b. if the Small Business is entitled to receive or has received an amount under a policy of insurance for the relevant costs claimed; or for any expenses that are claimable under any insurance policy.

c. the Small Business owner has successfully received funding or assistance from any other government source or program or donation in relation to the business, for the Eligible Disaster where that funding or assistance has met the relevant costs claimed; or

d. for loss of income as a result of the Eligible Disaster.

4. Eligibility criteria

4.1 Small Business and Not-for-Profit organisation eligibility criteria

4.1.1 To be eligible for the grant, the Small Business applicant, other than a Not-for-Profit Organisation or sole trader, must:

a. employ exactly or fewer than 20 full-time equivalent employees;

b. hold an active Australian Business Number (ABN) and have held that ABN at the time of the Eligible Disaster;

c. own a Small Business located in the Defined Disaster Area for the Eligible Disaster that has suffered direct damage as a result of the Eligible Disaster;

d. have been engaged in operating the Small Business in a Defined Disaster Area when affected by the Eligible Disaster; and

e. be primarily responsible for meeting the costs claimed in the application; and

f. be intending to re-establish the Small Business in the Defined Disaster Area for the Eligible Disaster.

4.1.2 To be eligible for the grant, an applicant that is a Not-for-Profit must:

a. be a legitimate Not-for-Profit Organisation;

b. be registered – i. With Australian Charities and Non-for-profits Commission (ACNC) or an equivalent State regulatory body and have held that registration at the time of the Eligible Disaster; ii. As an incorporated association or co-operative with Fair Trading NSW; or iii. Deemed to be a Not-for-Profit Organisation, in accordance with the current Australian Accounting Standards Board (AASB);

c. be an entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent entity and each of the entities that it controls;

d. be located in the Defined Disaster Area for the Eligible Disaster and that has suffered direct damage as a result of the Eligible Disaster;

e. be primarily responsible for meeting the costs claimed in the application; and

f. be intending to re-establish the Not-for-Profit organisation in the Defined Disaster Area for the Eligible Disaster.

4.1.3 To be eligible for the grant, an applicant that is a sole trader must derive the majority of their income from the business, unless the applicant can satisfy the Administrating Agency that they:

a. derived the majority of their income from the business, immediately before the Eligible Disaster;

b. would have continued to derive the majority of their income from the business had the Eligible Disaster not occurred;

c. own or operate a Small Business located in the Defined Disaster Area at the time the Eligible Disaster occurred;

d. suffered direct damage as a result of the Eligible Disaster;

e. are primarily responsible for meeting the costs claimed in the application; and

f. intend to re-establish the Small Business in the Defined Disaster Area for the Eligible Disaster.

4.2 Subject to all above eligibility, an applicant may also be eligible for a grant if:

a. the Small Business is located outside the Defined Disaster Area for the Eligible Disaster but operates part-time or on some regular basis within the Defined Disaster Area and that business’ plant and/or equipment were damaged.

b. the Not-for-Profit organisation is located outside the defined disaster area for the eligible disaster but operates part-time or on some regular basis within the defined disaster area and that Not-for-Profit organisations’ plant and/or equipment were damaged.

4.3 The following businesses are not eligible, per this Program’s definition of Small Business:

a. Public company

b. a Charitable business

c. a body corporate under the Body Corporate and Community Management Act 1997

d. Farm Enterprise

e. Superannuation Fund

5. Eligible Separate Business criteria

5.1 Applicants who operate more than one small business under a single ABN may apply for assistance for each Eligible Separate Business up to the maximum amount of assistance available for the relevant defined disaster area.

5.2 When determining an application for Eligible Separate Businesses, the following may be considered (but is not limited to):

a. staffing arrangements;

b. whether the Eligible Separate Business has its own plant, equipment or stock;

c. accounting and insurance arrangements;

d. whether the Eligible Separate Business operates under their own trading name;

e. the commercial viability and autonomy of each business.

6. Evidence of direct damage

6.1 For applicants in Severely Impacted Suburbs:

a. an initial claim of up to $25,000 must be supported by evidence of the direct damage associated with the Eligible Disaster at the time of making the application. This must include:

  • (i) a list of the direct storm and flood-related damage; and
  • (ii) photographic evidence of the direct storm and flood-related damage.

b. where the total of all claims exceeds $25,000, claims must be supported by:

  • (i) the items in clauses 6.1a., if not provided already; and
  • (ii) Evidence of Payment for all amounts claimed, including in relation to any previous claims, once the $25,000 limit has been reached.

6.2 For applicants in Highly Impacted Suburbs:

a. an initial claim of up to $15,000 must be supported by evidence of the direct damage associated with the Eligible Disaster at the time of making the application. This must include:

  • (i) a list of the direct storm and flood-related damage; and
  • (ii) photographic evidence of the direct storm and flood-related damage.

b. where the total of all claims exceeds $15,000, claims must be supported by:

  • (i) the items in clauses 6.2a., if not provided already; and
  • (ii) Evidence of Payment for all amounts claimed, including in relation to any previous claims, once the $15,000 limit has been reached.

6.3 For all other applicants in the Defined Disaster Area,

a. an initial claim of up to $15,000 must be supported by evidence of the direct damage associated with the Eligible Disaster at the time of making the application. This must include:

  • (i) a list of the direct storm and flood-related damage;
  • (ii) photographic evidence of the direct storm and flood-related damage; and
  • (iii) quote/s for the replacement of the item, works or services for the applied amount; and
  • (iv) any other supporting information that demonstrates the financial impact of the damage (such as damage assessments or receipts);

b. where the total of all claims exceeds $15,000, claims must be supported by (if not provided already):

  • (i) the items in clauses 6.1a(i),(ii) and (iv); and
  • (ii) Evidence of Payment for all amounts claimed, including in relation to any previous claims,

once the $15,000 limit has been reached

6.4 In circumstances where the direct storm and flood-related damage is unable to be photographed or other information (such as receipts) is not available, the applicant may provide other appropriate evidence to prove direct damage. Service NSW will consider the appropriateness of this information and may request the applicant provide further information to establish eligibility.

7. Application and assessment

7.1 Applicants are requested to refer to Service NSW website and complete an online application accompanied by the documentation stated on the application form before the application closing deadline.

7.2 Applicants will need to produce quotes, estimates or invoices where available in accordance with clause 6. Applicants are not required to complete all expenditure before applying for a grant. However, Evidence of Payment for completed work will be required prior to payment of any grant amount over $15,000 or $25,000, as applicable under clause 6 (and up to the maximum of $50,000).

7.3 Complete applications will be assessed in order of receipt. Incomplete applications will not enter the assessment queue until all required information is provided.

7.4 Applications will be assessed against the eligibility criteria and Service NSW may request further information to help assess an application, including conducting site visits by Resilience NSW or Service NSW to discuss damages claimed by the applicant and assess eligibility.

7.5 Service NSW reserves the right to refuse an application where eligibility criteria are not met, or where the applicant does not or cannot provide sufficient information to determine if eligibility criteria have been met.

7.6 Applications submitted may be subject to audit by Service NSW or its agents in order to determine compliance with scheme guidelines.

7.7 Applicants must retain all tax invoices, official receipts, bank statements, quotations or other similar records for assistance received under the scheme until two years after the closing day for applications for the eligible disaster.

7.8 Applicants must consent to Service NSW conducting an audit of quotations, tax invoices, official receipts, bank statements or other similar records to verify the amounts paid under the program have been used in accordance with the Terms and Conditions. Penalties may apply for false or misleading information.

7.9 Applicants must provide authorisation for Service NSW to contact their insurance company to confirm or verify entitlements or the outcome of any claims made in relation to the eligible disaster.

7.10 Before applying for financial assistance under this program, applicants should seek advice from their legal, business or financial advisers about the tax implications of this financial assistance.

7.11 By applying to receive a grant, an applicant agrees to be bound by the Terms and Conditions which will be made available to the applicant as part of application.

Important Information

  1. These guidelines are correct at the time of publishing.
  2. Resilience NSW/Service NSW reserves the right to amend, alter or change these guidelines at any time, and it is the responsibility of the applicant to ensure that they check the relevant website prior to application.
  3. The guidelines that apply to your application will be the guidelines that are current at the time your application is received by Service NSW.

8. Definitions

Administrating Agency means the responsible agency/department/body for assessing and administrating the small business grant applications.

Defined Disaster Area means the Local Government Areas (LGAs) listed in the 'Financial year 2021–22' table in respect of AGRN#1012 on the NSW Government 'Natural disaster declarations' website.

Note: The impacted LGAs are subject to change. Refer to the NSW Government 'Natural disaster declarations' website for the latest information.

Direct Damage means a direct and material impact of storms and floods on business assets or equipment.

Disaster Recovery Funding Arrangements means the funding arrangements as agreed between the Commonwealth and the State for providing financial assistance to communities affected by an eligible disaster (available on the Australian Government Disaster Assist website).

Eligible Disaster means NSW Severe Weather and Flooding from 22 February 2022 onwards (AGRN 1012).

Eligible Separate Business means a Small Business that shares an ABN with one or more eligible Small Businesses that would be commercially viable and autonomous if separated from each eligible Small Business under the same ABN.

Evidence of Payment means any of the following:

a. an invoice including the name, address and ABN (if applicable) of the entity that issued the invoice and a description of each item to which the invoice relates and is clearly identifiable as being related to approved expenditure for the applicant and can be related to damage from the eligible disaster

b. a receipt including the name and address and ABN (if applicable) of the entity that issued the receipt and a description of each item to which the receipt relates

c. a copy of the applicant’s bank transfer and/or bank statement.

Farm Enterprise means a business that primarily carries on the activity of producing crops, livestock, forestry for the commercial production of products for consumers, or any activity listed in Division A of the Australian New Zealand Standard Industrial Classification 2006 (ANZSIC) 1292.0 (Revision 2.0) published by the Australian Bureau of Statistics.

Full-time Employment means an individual who ordinarily works for at least 35 hours each week for the small business.

Highly Impacted Suburbs means a suburb located within the Defined Disaster Area and affected by the Eligible Disaster. See the list of Highly Impacted Suburbs.

Note: the Highly Impacted Suburbs are subject to change, therefore refer to the above link for the latest information.

Home-based Business means a Small Business that operates from residential premises. For the purpose of this Grant, the Small Business must be the registered proprietor of the property.

Not-for-Profit Organisation means an entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent entity and each of the entities that it controls.

Primary Premise means the premise the Small Business was operating from at the time of the Defined Disaster.

Public Company means has the meaning given to it in the Corporations Act 2001 (Cth).

Reinstatement means the carrying out of activities that are necessary to help the Small Business continue or resume production at a similar level as before the eligible disaster.

Severely Impacted Suburbs means a suburb located within the Defined Disaster Area and affected by the Eligible Disaster. See the list of Severely Impacted Suburbs.

Small Business is a business that:

a. holds an active Australian Business Number (ABN); and

b. is structured as a company, joint venture, partnership, trust or as a sole trader;

c. employs exactly or fewer than 20 full-time equivalent employees. That is, the sum total of all standard hours worked by all employees (whether full-time or part-time) is less than the number of standard hours which would be worked by 20 full-time employees, as defined by the Australian Bureau of Statistics; and

d. for the purpose of this Grant, may be a Not-for-Profit Organisation.

A Small Business does not include the following:

a. Public company

b. a Charitable business

c. a body corporate under the Body Corporate and Community Management Act 1997

d. Farm Enterprise

e. Superannuation Fund

f. Personal investment vehicle.

Last updated: 15 August 2022