For farm business owners affected by drought, or who want to prepare for drought.
- 3.11% variable interest rate
- Up to $2m
- Apply anytime
- Provide security for the loan
- Secure the support of your commercial lender for the proposed loan
- Repay the loan
- You must sell (or want to sell) into supply chains outside your state or territory.
Use this loan to
- refinance your debt
- pay for operating expenses or capital
- access new debt for operating expenses and capital
You cannot use this loan for
- non-farm assets and expenses
- paying out dividends or equity to owners
- reimbursement for depreciation of assets
- tax or other statutory payments
- your own labour costs
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 farm business.
Repayment structure — first 2 years interest free, then 3 years interest only, then principal and interest for remainder of the 10 year term. After 10 years, you can refinance any remaining balance with a commercial lender.
Your farm business must:
- be located in an eligible area
- have a drought management plan
- be in financial need of a loan
- be financially viable in the long term
- have existing commercial debt
- meet the eligibility criteria in these guidelines.