The Federal Government’s new $1 billion Economic Resilience Program offers zero-interest loans to eligible businesses impacted by rising costs and global disruption. Our latest article explains who may qualify and what it means for your business.
Economic Resilience Program 2026: What It Means for Australian Businesses (and Whether You Qualify)
The Federal Government has just rolled out the $1 billion Economic Resilience Program (ERP) — a targeted support package designed to stabilise key parts of the Australian economy under pressure.
At face value, it sounds like another funding initiative.
It’s not.
This is a highly targeted, short-term intervention aimed at businesses sitting inside critical supply chains, particularly those absorbing the impact of global disruption, fuel volatility and cost shocks.
If you operate in (or rely on) these sectors, this matters.
What is the Economic Resilience Program?
The Economic Resilience Program sits under the Government’s broader $15 billion National Reconstruction Fund, with a clear objective:
Keep critical supply chains moving and protect domestic production capability during global disruption.
The program provides:
- Zero-interest loans (up to 2 years)
- Loan amounts up to $5 million (bank-administered)
- Delivered via major Australian banks
- Principal must still be repaid (this is not a grant)
This is about short-term liquidity support, not long-term capital funding.
Who is this actually for? (Industries targeted)
This is where most businesses misunderstand the program.
It is not broad-based SME support [which is crazy]. It is targeted at businesses operating in critical supply chain industries, including:
Core Eligible Sectors
- Fuel production, storage and distribution
- Freight and logistics businesses
- Fertiliser and agricultural input manufacturing
- Plastics and chemical manufacturing
- Transport of value-added goods within these supply chains
Flow-on Industries (Indirect Impact)
Even if you’re not directly in these sectors, you may still feel the impact:
- Construction* (input cost volatility driven by logistics and fuel)
- Manufacturing (input supply disruptions)
- Agriculture (fertiliser and transport dependency)
This is important — because while you may not qualify, your cost base is still being affected. What is crazy in our opinion under the current guidelines released Construction is largely left out. The ANZSIC codes do not cover most operations within the construction and civil industries.
Eligibility Criteria (What you actually need to qualify)
To access the program, businesses must meet strict criteria:
Core Requirements
- Australian business with a valid ABN
- Typically turnover under $100 million (for bank-administered loans)
- Loan size up to $5 million
- Operating within eligible industries (via ANZSIC classification)
The Key Test: “Materially Impacted”
This is the most important and most misunderstood requirement.
You must demonstrate that your business has been adversely economically affected by market disruption events.
What does “materially impacted” actually mean?
This is where the commercial reality comes in. From our perspective, “materially impacted” is not a tick-the-box exercise — it’s a story supported by numbers.
Examples of what qualifies:
Cost Shock:
- Significant increases in fuel costs
- Freight and logistics cost increases
- Key input materials (fertiliser, plastics, chemicals) rising materially
Margin Compression:
- Fixed-price contracts becoming unprofitable
- Reduced gross margins due to input volatility
Supply Chain Disruption:
- Delays or inability to source materials
- Increased lead times impacting delivery
Cash Flow Pressure:
- Working capital blowouts
- Increased funding required to maintain operations
Reduced Production or Capacity:
- Scaling back operations due to cost or supply constraints
What can the funding actually be used for?
The loans are designed to:
- Offset increased input costs
- Stabilise short-term cash flow
- Support continued operations
- Maintain or increase production capacity
What you can’t do:
- Refinance existing debt
- Use it as long-term growth capital
What this means for business owners (the real takeaway)
This program tells us three things:
- The Government is prioritising supply chain stability
This is not broad economic stimulus — it’s targeted protection of key industries.
- Pressure in fuel and logistics is real (and expected to continue)
The entire program is built around fuel-driven cost shock and global disruption.
- Most businesses won’t qualify — but will still feel it
If you’re outside the core industries, you’re likely:
- Absorbing cost increases
- Dealing with margin pressure
- Not eligible for direct support
That’s the gap and its huge!
Should you be looking at this?
You should be considering the program if:
- You operate in manufacturing or logistics
- You are directly exposed to fuel or input volatility
- Your margins have been materially compressed
- Your working capital position has deteriorated
If that’s you — this is worth exploring quickly.
The funding is:
- Time-limited
- Bank-assessed
- Competitive
Final word
This is not a “nice to have” program. It’s a shock absorber, designed for businesses sitting at the centre of economic pressure.
If you qualify, use it strategically [you will need to ensure that your financial models are updated as it is fully repayable].
If you don’t, the real question becomes:
How are you managing the flow-on impact of these same pressures inside your business?
That’s where the real work starts.
Need help assessing eligibility or impact?
We’re already working with clients to:
- Assess eligibility
- Build the “material impact” case
- Stress test cash flow and margins
- Align funding with broader strategy
If you want a clear view on where you sit — reach out.
