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The National Reconstruction Fund Corporation (NRFC) has launched a $1 billion Economic Resilience Program offering zero-interest loans to Australian businesses in sectors disrupted by global market turmoil, including freight and logistics, fuel, fertiliser and plastics manufacturing.
The program, which opened today and will remain available for six months, is designed to support businesses grappling with cost pressures and supply chain disruptions stemming from geopolitical instability through the conflict in Iran.
Loans of up to $5 million are available through six participating banks for businesses with annual turnover under $100 million, with loan terms of up to two years. Larger businesses can apply directly to the NRFC for tailored zero-interest financing.
ANZ, Commonwealth Bank, NAB, Westpac, Bendigo Bank and Bank of Queensland are the initial participating lenders administering the bank-delivered stream.
NRFC CEO David Gall says speed of deployment is a priority for the program.
“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," says Gall.
"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 bank about how you can apply for a zero interest loan under the Economic Resilience Program.”
The program targets businesses across seven priority sectors identified as vulnerable to global supply chain shocks: freight and logistics, fuel production and distribution, fertiliser manufacturing, plastics manufacturing, critical minerals processing, medical and pharmaceutical supply, and food processing.
Eligible businesses must demonstrate they have been materially affected by current global disruptions and require financing to maintain operations, manage increased input costs or adapt supply chains.
The bank-administered stream is intended to provide a streamlined application process through existing banking relationships, while the direct NRFC stream for larger businesses will involve tailored assessments.
Australian Banking Association (ABA) CEO Simon Birmingham says the banking sector is ready to assist affected businesses beyond the NRFC program itself.
"Banks have specialist teams ready to support customers across the country who may be struggling with a variety of challenges such as higher loan repayments, cost pressures or supply chain disruptions," says Birmingham.
"Whether you are an individual customer or a business, banks stand ready with practical support measures to help you navigate this difficult period."
Birmingham says banks will assess each situation on a case-by-case basis and work with customers to find appropriate solutions.
The $1 billion program sits within the NRFC's broader mandate to invest in Australian manufacturing and industrial capability.
The corporation, established by the federal government, has a $15 billion investment mandate spanning resources, agriculture, medical science, transport, renewables and defence.
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