Disaster recovery small business grant – storms and floods August and September 2022 onwards

Introduction

If you're a small business or a not-for-profit organisation in NSW and you've been directly impacted by storms and floods from 4 August 2022 or 14 September 2022 onwards, you may be eligible for a storm and flood disaster recovery small business grant.

This disaster recovery grant of up to $50,000 is to help pay for the costs of clean-up and reinstatement of a small business or not-for-profit organisation’s operations.

You must be a small business or a not-for-profit organisation in a defined disaster area (AGRN 1030 or 1034) to be eligible.

If you're a primary producer, you may be eligible for financial assistance tailored to your industry. More information on assistance for primary producers is available on the Rural Assistance Authority website.

Covered costs could include, but are not limited to:

• payment for tradespeople to conduct safety inspections
• equipment and materials required for cleaning up
• equipment and materials essential for immediately resuming operations
• payment for a cleaner if the service would not have been needed, or exceeds ordinary cleaning costs, in the absence of the disaster
• the removal and disposal of debris, damaged materials or damaged stock
• repairing premises and internal fittings
• leasing temporary premises within the defined disaster area, replacing or repair of motor vehicles registered for business use, or replacing lost or damaged stock, if it’s essential for resuming operations.

If you're a home-based business and intend to reinstate your business, you cannot claim the costs for leasing a temporary business premises, as this expense is typically not paid by the business. You may be eligible for support under the flood recovery back home grant, or rental support payment.

Note:

• You may be eligible for this grant if you've applied for previous flood support programs administered by Service NSW. Only direct damage caused by the flood events commencing 4 August 2022 or 14 September 2022 onwards can be claimed under this grant.
• If you were affected by the storms and floods in June and July 2022, you may be eligible for the separate June and July storm and flood disaster recovery small business grant.
  • If you received funds to cover costs for damage incurred during the storms and floods in June and July 2022 and you’re applying for the same costs in this grant, you'll need to provide evidence of payment for the original costs. This applies regardless of the amount you applied for in either grant. Your evidence of payment could include tax invoices, receipts, or a copy of a bank statement or bank transfer.
  • If you received the full grant amount of $50,000 to cover costs for damage incurred during the storms and floods in June and July under AGRN 1025 and are now applying for funds under AGRN 1030 or 1034, you will be unable to complete the online application process. Please call 13 77 88 to speak to a Service NSW Business Concierge.

Available funding

The maximum grant amount available is $50,000.

• Funds of up to $25,000 will be provided to eligible, approved applicants based on a list of the storm or flood-related damage and photographic evidence.
• Evidence, including valid tax invoices, will be required in relation to the first $25,000 if you are seeking funding from $25,000 to $50,000.
• To receive funds of between $25,000 to $50,000, you'll need to submit evidence of payment of the relevant costs at the time of application.

If your initial grant application is for an amount less than $50,000, you can submit further applications if you require additional funds to complete eligible clean-up and reinstatement activities.

Help with applying

A short video with hints and tips to help businesses apply for financial support with Service NSW.

Eligibility

You must be a small business owner or a not-for-profit organisation in a defined disaster area and:

• have suffered direct damage – 'direct damage' means a direct and material impact of flooding on business assets or equipment
• be primarily responsible for meeting the costs you are claiming
• intend to re-establish your small business or not-for-profit organisation within the same area
• if you're a small business, have held an ABN (which you currently hold) and are engaged in carrying on the small business at the time of the floods in the defined disaster area
• if you're a not-for-profit organisation, be registered with the Australian Charities and Not-for-profits Commission (ACNC) or an equivalent state regulatory body and have held that registration at the time of the eligible disaster
• be authorised to act on behalf of the business. Note: The following people can apply as long as they provide a letter of authority:
  • your accountant
  • registered tax agent
  • registered BAS agent
  • other business representative.

If you're a sole trader with no employees and you fulfil the above criteria, you're eligible to apply if you can show that you derive a majority of your income from the small business, or that:

• immediately before the eligible disaster, you derived a majority of your income from the business, and
• the majority of your income would have come from the business again if not for the eligible disaster.

You may also be eligible if your small business or not-for-profit organisation is located outside the defined disaster area, but:

• operates on a part-time or regular basis within the defined disaster area, and
• plant or equipment your small business owns was located in the defined disaster area and was damaged by the eligible disaster.

If you operate multiple small businesses, you may apply for grant funding for each eligible separate business up to the maximum amount available.

The grant is not available:

• if you’re entitled to make a claim under an insurance policy for the expenses listed in your application
• if you’ve received or are entitled to receive the expenses you are claiming under an insurance policy
• to cover loss of income as a result of the eligible disaster
• if your claim is for repairs to a building that the small business or not-for-profit organisation lets to a person for residential or commercial purposes, unless you let the property in the course of operating the small business or not-for-profit organisation
• for superannuation funds and personal investment vehicles – these are not regarded as businesses
• if you are a sole trader with no employees and you do not derive a majority of your income from the business.

If you need assistance, please call 13 77 88.

What you need

• a MyServiceNSW Account
  • you can create one when you start [your application]
  • you may need details from 2 identity documents (such as Australian driver licence, Medicare card, passport)
• your valid ABN/ACN number
  Note: If the information associated with your ABN is incorrect or does not exactly match your identity document details, your application may be delayed. Make sure your ABN details are up to date through the Australian Business Register (ABR).
• evidence of your non-profit status (if applicable)
• a letter of authority (if applicable)
• your business banking details for payment
• if you're a sole trader, evidence (such as a letter from an accountant or a tax return) that you derive a majority of your income from your business.

In addition:

For any amount you're seeking up to $25,000, you'll need:

• a list of the direct damage and the costs associated
• photographic evidence of the direct damage.

If you’re applying for more than $25,000, you'll also need to provide evidence of payment for completed work for the entire amount of funding for which you are applying. This could include tax invoices, receipts or a copy of a bank statement or bank transfer.

If you subsequently seek funding between $25,000 to $50,000, evidence of payment will be required in relation to the first $25,000 claimed.

Note: If you’re unable to provide evidence of direct damage, you may use other appropriate evidence to prove financial impact of the damage. We may request additional information and evidence to support your application.

Documentation tips

To ensure your application is processed without delay:

• When you enter details on how you propose to use the grant, make sure you include:
  • a list outlining each item that you intend to purchase using the funding
  • the known or estimated cost of each item
  • documentation to support each item, such as an official quotation, invoice or receipt dated from the date of the flooding in your local government area.
• As an example, your itemised list could look like this:
  • Clean-up services for café – $5,000 – the quote for the clean-up service (from the cleaning company) is attached.
  • New refrigerator – $3,500 – the invoice for the fridge (from online wholesale supplier) is attached.
  • Coffee machine – $5,000 – the quote for the machine (from a wholesale supplier) is attached.
  • Shelving for café storeroom – $5,100 – the quote (from a certified carpenter) is attached.
• If you are applying for an amount between $25,000 and $50,000, evidence of payment means:
  • an invoice including the name, address and ABN (if applicable) of the entity that issued the invoice and a description of each item included, clearly identifiable as being related to the approved expenditure and to damage from the eligible disaster
  • 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
  • a copy of your bank transfer and/or bank statement.

Note: The total amount that you are requesting from the grant should equal the amounts shown by your proposed expenditure.

Auditing requirements

You may be audited in the future, so you will need to keep all documentary evidence related to your application and assistance provided under the scheme for 2 years after the closing day for applications. As part of an audit, you will be required to provide evidence that you have used grant funds in accordance with the claims made in your application (for example, official receipts).

Service NSW conducts audits on some applications as part of its routine grants compliance program. If you submit a statutory declaration, you may be audited following the end of the 2022–23 financial year and required to produce the original statutory declaration and a tax return or an accountant’s letter.

How to apply

Applications are closed.