Applications are now open for the Australian Government’s $1 billion Economic Resilience Program (ERP), delivered through the National Reconstruction Fund (NRF). The program provides zero-interest loans to eligible manufacturing and logistics businesses in critical supply chains, helping ease short-term cash-flow pressures and keep essential operations running locally.
The program comes at a critical time. Ongoing conflict in the Middle East is adding to cost pressures in the domestic economy. Manufacturing and logistics businesses are particularly exposed through higher fuel costs, rising input prices for fertilisers and chemicals, and continued supply‑chain disruption. This is occurring at a time when inflation remains elevated and the Reserve Bank is tightening monetary policy, adding to financial pressure across the economy.
For eligible businesses, the ERP offers access to a targeted, temporary loan facility while global economic conditions remain uncertain. Here’s what you need to know about how the program works, whether you’re eligible and how to apply.
How the program works
ERP will deliver these loans, through participating banks, to help eligible manufacturing and logistics businesses manage disruption in critical supply chains.
Businesses with an annual turnover under $100 million can apply for a loan of up to $5 million with some lenders offering amounts as low as $10,000. This makes the program accessible to both small operators and mid-sized enterprises. Businesses that have a turnover of more than $100 million can also apply for interest-free loans, however, the application must be filed directly with the NRF. Loan terms run for up to two years.
It is worth noting that while no interest is charged, standard bank fees still apply and the full principal must be repaid at the end of the term. This is a short-term, zero-interest strategic debt facility designed to alleviate cash-flow pressure rather than provide permanent capital support.
Determining your eligibility
Eligibility is tightly defined. To be eligible for an ERP loan (bank‑administered stream), you’ll need to show:
- You’re an Australian business with an active ABN
- You operate primarily in Australia
- Your primary operations are in manufacturing or logistics
- Your main business activity falls within an eligible ANZSIC code, which includes targeted supply-chain areas such as fuel, food, fertiliser and plastics, plus relevant logistics activities
You will also need to demonstrate that your business has been materially impacted by recent geopolitical disruptions. Citing general inflationary pressures alone won’t suffice, as your bank will require clear evidence of how supply-chain disruptions or conflict-related price shocks have directly impacted your bottom line.
Banks will look for changes in trade terms with key suppliers, severe delays in supply or sharp increases in the cost of key inputs. Acceptable documentation could include demand notices, debt notices, quotes from alternative suppliers or detailed customer attestations.
Strategic use of funds
There are clear rules that dictate how this capital can be used. Eligible businesses can put the funds towards:
- Managing the increasing costs of fuel and related input costs
- Recovering from economic damage linked to supply-chain disruptions
It’s also important to understand that the loans cannot be used to refinance existing debt. Your bank will assess whether your intended use of funds sits within the program’s guidelines, so it pays to be clear on this before you apply.
- Assess debt capacity: Even without interest, a new liability changes your balance sheet and risk profile. Conduct comprehensive cash flow modelling to ensure your business can generate sufficient liquidity to repay the loan within two years.
- Collate evidence: Gather your financial statements, supplier notices and operational data immediately. A well prepared application that clearly highlights material market disruption will make the assessment smoother.
- Act decisively: The application window for the bank-administered portion of the ERP is limited to six months from 20 April 2026.
The ERP offers a real opportunity for SMEs under pressure to receive targeted, temporary support to stabilise their operations and refocus on growth. But accessing the funding takes preparation, from meeting the eligibility criteria to pulling together the right evidence and making sure a new loan fits your broader financial position.
If you require assistance assessing your eligibility, preparing robust cash flow models to support your application or determining how this funding fits your broader strategic objectives, please contact your local William Buck advisor today.
