agbiz

AgBiz Drought Loan

Supporting regional Australians to take control of their farm-related small business through drought.

Purpose

For farm-related small businesses to manage and recover from drought.

Use this loan to:

 

  • Pay employees and contractors

    Pay for salaries and wages.

  • Pay business expenses

    Including rent and rates and current liabilities.

  • Pay for operating expenses

    Pay for fuel and other supplies essential to the business operation.

  • Refinance debt

    Refinance certain existing debt at our low interest rate to improve cash flow.

Loan terms

$500k
Maximum amount
3.04%
Variable rate
10
Year term
5
Years interest only
No fee
Extra repayments
No fee
Application
$0
Early settlement
Redraw
Not available
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 five years interest only, 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.

Eligibility

You
  • are an Australian citizen or permanent resident
  • contribute or plan to contribute at least 75% of your labour to the farm business(under normal circumstances)
  • earn or plan to earn at least 50% of your income from the farm 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
  • secure the support of your commercial lender for the proposed loan
  • repay the loan
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.

Affected areas

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.

Please contact us on 1800 875 675 or email info@ric.gov.au to discuss the affected area eligibility of the AgBiz Drought Loan.  

Before you apply

You need to check
You need to have
  • Australian Business Number (ABN)
  • 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 two ways to apply for a AgBiz Drought Loan.

We encourage you to apply online.

You may need to contact your trusted financial advisor or the Rural Financial Counselling Service (RFCS) to help you complete your application.

 

 

    • Follow the AgBiz Drought Loan Document Checklist to ensure you submit a complete application.

    • 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 assessing your application and provide an outcome as quickly as possible.

    • Once you begin you will have 30 days to submit your online loan application. You will receive a reminder at 10, 20 and 30 days.

    Apply now Resume application

     

     

    • Follow the AgBiz Drought Loan 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.

    • Submit your application to applications@ric.gov.au or send to:

    Regional Investment Corporation, PO Box 653, Orange, NSW, 2800.

    AgBiz Drought Loan Application Form

    Complete this form on your computer or print and fill it in by hand.

    • Right click on the link above and select 'save target as' or 'save link as' to download the form.

    • Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.

    • Save the application form regularly as you are filling it in.

    • The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.

    Resources

    Guidelines

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

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

    Application form

    Complete this form on your computer or print and fill it in by hand.

    • Right click on the link and select 'save target as' or 'save link as' to download the form.

    • Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.

    • Save the application form regularly as you are filling it in.

    • The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.

    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.

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

    Statutory declaration

    You may need to make a statutory declaration to support your application.

    Commonwealth statutory declaration

    Commonwealth statutory declaration

    Guarantor asset and liability statement

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

    Guarantor asset and liability statement

    Guarantor asset and liability statement

    Guidelines

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

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

    Application form

    Complete this form on your computer or print and fill it in by hand.

    • Right click on the link and select 'save target as' or 'save link as' to download the form.

    • Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.

    • Save the application form regularly as you are filling it in.

    • The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.

    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.

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

    Statutory declaration

    You may need to make a statutory declaration to support your application.

    Commonwealth statutory declaration

    Commonwealth statutory declaration

    Guarantor asset and liability statement

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

    Guarantor asset and liability statement

    Guarantor asset and liability statement

    Help and support

    If you have questions about your loan:

    Call us on 1800 875 675

    Email us through our online contact form

    The Rural Financial Counselling Service (RFCS) can help with your application.

    Customer stories

    RIC loans are building a stronger regional Australia for farmers and farm-related small businesses.

    Collage of four customer story images.