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AgBiz Drought Loan

Supporting regional Australians to take control of their business through the drought.

​​​Who can apply

Eligible drought-affected small businesses

Amount

Up to $500,000

When

Apply anytime

Eligibility

You can only apply for this loan if your small business is currently or has been supplying goods or services relating to primary production to farm businesses in an affected area.

You 

  • 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 in financial need of a loan
  • 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
  • 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

Purpose

Manage your small business through the drought

Use this loan to​

  • refinance your debt
  • pay for operating expenses
  • pay suppliers 
  • pay salaries, wages and rent

You cannot use this loan for

  • purchase of private and domestic assets
  • payment of private and domestic expenses
  • capital expenditure
  • purchase of and/or investment in non-small business assets and expenses
  • payment of tax and statutory payments
  • your own labour costs
  • reimbursement for depreciation of assets
  • payment of dividends or other distributions of equity to owners
  • activities funded under other Commonwealth and state or territory government programs.
     

Loan terms

Quick facts

Amount Up to $500,000 Term 10 years
Early settlement No fee Interest rate ​2.17% variable rate
Apply Anytime Application fee No fee
Extra repayments No fee Redraw Not available​

More terms

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 2.17% 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.

Before you apply

You may need to contact your trusted financial advisor or a Rural Financial Counsellor to help you fill out your application.
Find a Rural Financial Counsellor near you

You need to check

You need to have

  • Australian Business Number (ABN)
  • 3 years' financial history
  • identity documents
  • proof of your eligibility
  • your business cash flow budget

Ask us a question

We are here to help

Apply

There are 2 ways to apply for an AgBiz Drought Loan:

  1. Using our online application form
  2. Using our PDF application form

 

Using our online form

  • Before you start, talk to your commercial lender. Let them know you plan to apply for a RIC loan.

Please note:

  • Follow the AgBiz Drought Loan Document Checklist to ensure you submit a complete application. Financial information for FY2020 will be considered in scope until 31/12/2021. 
  • The online form has mandatory fields and documents. You must supply this information to progress to the next stage of the form.
  • You must submit all required information so we can start assessment of your application and provide an outcome as quickly as possible.
  • Once you begin your online loan application you will have 30 days to submit it. You will receive a reminder at 10, 20 and 30 days.
  • If you have any questions we encourage you to talk to our loan assessment team. You can call them on 1800 875 675.

Click here to apply for an AgBiz Drought Loan online

 

We encourage you to submit your loan application online.

 

Using our PDF application form

  • Check the information you will need to provide. Please note financial information for FY2020 will be considered in scope until 31/12/2021. 
  • Talk to your commercial lender. Let them know you plan to apply for a RIC loan.
  • Follow the AgBiz Document Checklist on page 1 of the PDF application form. We can’t start assessing your application until we get all the information we ask for, including attachments.
  • If you have any questions we encourage you to talk to our loan assessment team. You can call them on 1800 875 675.

AgBiz Drought Loan Application Form

If using the PDF application form, submit your application to us loans@service.RIC.gov.au or send to:
Regional Investment Corporation, PO Box 796, Bendigo, VIC 3552.

You can complete this form on a computer (Fillable PDF) or you can print it and fill it in by hand. You are not able to save the form when opened in a browser.

To use the Fillable PDF application form you must download it to your desktop first. Right click on the link above and select 'save target as' or 'save link as' and download the form to your desktop. 

Open the form on your desktop using Acrobat Reader. Make sure you save the application form regularly as you are filling it in. The fillable PDF form will not function correctly when it is opened in a web browser or other software, for example Microsoft Edge, Chrome, Firefox, Preview.

You can download a free version of Adobe Acrobat Reader DC software.

Help and support

Help

We will assess your application against the criteria in the loan guidelines

We may need to contact you by phone or email to discuss your application. We will write to you to confirm the outcome of your application.

Learn more about the RIC loan process.

Support

The Rural Financial Counselling Service (RFCS) can help with your application.
Find a Rural Financial Counsellor near you

Visit our help page for a list of support services.

Contact us

We are here to help.

Resources

Guidelines

Read the detail on who can apply for a loan and what happens after you apply.

Download:

AgBiz Drought Loan Guidelines

 

Application forms

Complete the application form and send it with supporting documents to applications@ric.gov.au

Download: Right click on the form and save on your local device as an Adobe Acrobat Document before you begin filling out the form.

​Cash flow budget

You must include your business cash flow budget with your application.

We will use this to help assess your financial position, and your ability to repay the loan.

If you do not have your own budget spreadsheet, you can use our template.

Download:

This template may not meet government accessibility requirements. Contact us for help.

Guarantor asset and liability statement

You may be required to provide a guarantor's asset and liability statement with your application.

Download:

Eligible area

To be eligible for an AgBiz Drought loan, your small business must be, or have been, supplying goods or services relating to primary production to farm businesses located in an affected area. You can check the location of farm businesses in affected areas by entering their address or GPS coordinates into the eligible area map below.

These are ‘affected areas’ as defined by the United Nations Convention to Combat Desertification.
 

Find your location

  1. Enter your address or GPS coordinates into the search bar.
  2. Use the zoom function (– and +) until you can see the boundaries of your entire farm business.

 

Print or save your map

  1. Select the print icon to activate the ‘Print’ pop-up box.
  2. Add a custom title (e.g. your farm business address).
  3. Open the print dropdown menu and choose MAP_ONLY. Your map may take a few minutes to generate.
  4. Select the Printout link to print a copy or save it to your computer.
  5. To save, right click on the image and select the option to save picture as.
  6. If you are having trouble printing your map, save it to your computer first.

 

Map of eligible areas in Australia​

 

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