AUS: AgBiz Drought Loans

The purpose of the loan is to manage your small business through the drought.

  • 1.77% variable interest rate
  • Up to $500,000
  • Apply anytime
  • 10 years

Use this loan to

  • Refinance your debt
  • Pay for operating expenses
  • Pay suppliers
  • Pay salaries, wages and rent

Percentage of total debt — at least 50% of your total debt must stay with a commercial lender.

Frequency of repayments — tailored to the cash flow of the small business.

Repayment structure — First five years interest only at the current variable rate of 1.92% then five years’ principal and interest over a 10-year loan term.

The structure of principal repayments will be dependent upon a number of key factors, including the loan amount, the purpose of the funding and the nature of the security.

The principal of the loan may be repaid (wholly or partly) at any time during the term of the loan without incurring a fee.
Full terms and conditions are available in the loan guidelines.

Key Criteria:


  • are an Australian citizen or permanent resident
  • contribute at least 75% of your labour to the small business (under normal circumstances)
  • earn at least 50% of your income from the small business (under normal circumstances)

Your business

  • is not a farm business
  • has fewer than 20 employees other than casual employees
  • supplies goods or services relating to primary production to farm businesses in affected areas
  • has had a reduction in the turnover; or an increase in unsecured debt as a result of drought
  • is in financial need of a loan
  • has the capacity to repay the loan
  • is financially viable in the long term
  • has existing commercial debt
  • is registered for tax purposes in Australia with an ABN and is registered for GST
  • operates as a sole trader, trust, partnership or private company
  • is not under external administration or bankruptcy

You must

  • provide security for the loan
  • secure the support of your commercial lender for the proposed loan
  • repay the loan
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