AUS: Drought Loans

Regional Investment Corporation

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.

Key Criteria:

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.
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