Disaster recovery loans for Australian businesses

Where does a private recovery loan fit?

After a declared disaster, Australian businesses can often access a mix of help: insurance, federal and state grants, concessional loans through state recovery authorities, and tax relief from the ATO. That help is valuable — but almost none of it is instant. Applications need evidence, assessors are stretched, and grants have rounds and eligibility checks.

A private disaster recovery loan is the fast layer. It gets cash into the business within days so you can clean up, repair, restock and reopen, then is repaid or reduced when insurance and official support arrive.

How the layers fit together

Layer	Speed	Cost	Role
Private recovery loan	Fast — same day possible for secured $20k–$250k	Priced on circumstances	Get open now
Insurance	Weeks to months	Already paid for	Repay the bridge
Grants	Weeks, depends on program	Free	Reduce the total cost
Concessional loans	Weeks, application-based	Concessional	Long-term rebuild
ATO relief	Fast to request	—	Free up cash by deferring tax

Check Disaster Assist and your state recovery authority as soon as the event is declared. Business.gov.au also keeps a page on assistance for disasters and emergencies.

What can a recovery loan pay for?

• Clean-up, make-safe and temporary repairs.
• Replacing stock and consumables.
• Repairing or replacing equipment and vehicles.
• Temporary premises or relocation.
• Wages while you rebuild, so you keep your team.
• The underinsured gap, if insurance won’t cover the full rebuild.

Which loan type?

• Bridging to insurance: a property-secured bridging loan repaid from the payout.
• Longer rebuild or underinsurance: a fast second mortgage over a term that matches recovery.
• No property: an unsecured loan sized on pre-disaster trading, typically $5,000 to $500,000.
• Equipment-specific: see equipment repair finance.

Illustrative example: a bushfire-affected winery

Illustrative only. A small winery and cellar door in regional Victoria loses its shed, bottling equipment and part of its stock in a bushfire. Insurance acknowledges the claim, but assessment will take weeks. Vintage is approaching, and without equipment the year’s harvest is at risk.

The owners have a home in town with equity. A $300,000 second mortgage is arranged within 48 hours to hire bottling equipment, replace the shed roof and fund wages. They apply for a state recovery grant and a concessional loan for the longer rebuild. When the insurance payout arrives, a large part of the second mortgage is repaid early.

Making the application easier

Gather what you can: ID, ABN, insurance claim number, photos of damage, quotes for work, and property details if offering security. If bank statements were lost, ask your bank to reissue them. Lenders that fund recovery understand that paperwork can be patchy after a disaster; honesty about what’s missing helps.

The flood, fire or storm page covers the first-hours checklist in more detail.

How do I avoid borrowing twice?

After a disaster, costs arrive in waves: make-safe and clean-up first, then stock and equipment, then the rebuild, then the gaps insurance doesn’t cover. Owners who borrow only for the first wave often find themselves applying again a month later, under more pressure. A better approach is to estimate the whole recovery budget early, even roughly:

Stage	Typical costs	Likely source
Week 1–2	Make-safe, clean-up, waste removal, temporary power	Private loan or cash
Weeks 2–6	Stock, equipment hire or replacement, temporary premises	Private loan, insurance advances
Months 2–6	Repairs and rebuild	Insurance, concessional loans, grants
Ongoing	Underinsured gap, lost trading	Longer private loan, grants

With that picture, you can choose one facility that covers the early stages and is designed to be reduced when insurance and grants arrive — such as a second mortgage with no penalty for early repayment, or a line of credit you draw as costs land.

What about my staff during the rebuild?

Keeping a trained team together is often what lets a business reopen quickly. Funding wages for a few weeks while the premises are repaired can be cheaper than recruiting and training new people later. Check whether any disaster support payments apply to your workers, and get advice on your obligations if hours have to change.

Reopen on your timetable

The businesses that recover best are usually the ones that reopen fastest. Start a 60-second enquiry and tell us what you need to get trading again.

There’s no credit check when you first enquire, and your details won’t be passed around a pile of lenders — one specialist takes it on and calls you back. Please be accurate about the damage, your insurance position and any property, so the first option is the one that gets you open. See if you qualify.