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Small Business

Home Recovery (DRFA-WA)
Small Business

Interest Rate Subsidy

An interest rate subsidy may be available to small businesses for new loans to repair/replace assets that have been damaged or destroyed as a direct result of an eligible disaster, and for which this DRFAWA assistance measure has been activated.

The loan must be provided by an Authorised Deposit Taking Institution (ADTI).

DRFAWA provides an interest rate subsidy, currently set at 4 per cent with the subsidy payments:

  • Capped at a maximum of $6,000 (being 4 per cent of a loan maximum of $150,000)
  • A maximum period of ten years, of which the first two years may be free of capital repayments at the discretion of the ADTI.

In cases where no capital repayments or minimal capital repayments are made from the third year onwards a 'notional' deduction of 1/10th of the original loan principal will be deducted for each year for which the subsidy is available.

DRFAWA will fund the interest rate subsidy, annually in advance, based upon the satisfactory submission of a claim form after the anniversary date of the loan commencement. The claim form must be supported by evidence of the loan balance at this time. Evidence can be a copy of the relevant loan account statement showing the actual loan balance, on or shortly after the anniversary date of the loan drawdown/disbursement.

Any changes to the loan are required to be notified immediately to DFES:

General Conditions

To be eligible, a small business proprietor(s) must:

  • Be a registered small business with an Australian Business Number (ABN)
  • Employ less than 20 full-time equivalent staff
  • Demonstrate to the satisfaction of a DFES Disaster Recovery Funding Officer that the small business operates locally. Public companies are not eligible
  • 0Be actively engaged in the operation of the small business and derive the main source of income from that small business
  • Demonstrate to the satisfaction of the ADTI that the funds required are not available from their own resources
  • Demonstrate to the satisfaction of a DFES Disaster Recovery Funding Officer that the items for which the loan is required occurred as a direct result of a natural disaster.

If you consider that your small business may be eligible to apply for an Interest Rate Subsidy (IRS), complete an Interest Rate Subsidy Expression of Interest and email it to

Interest Rate Subsidy Expression of Interest – Excel 42.1KMB

Small business proprietors will receive an email and/or letter confirming eligibility to access the interest rate subsidy and further instructions on loan application process.


DFES Disaster Recovery Funding Officers

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