Woman and child standing on dry farm paddock with sheep in background

Drought Loan

Help to prepare for, manage through, and recover from drought.

Purpose

Prepare for drought. Manage or recover from the effects of drought.

Use this loan to:

  • Prepare for drought

    Prepare for future droughts through measures including water efficiency techniques, accumulating feed reserves.

  • Fund drought management activities

    Pay outstanding bills, pay for fodder or carting of water for livestock or produce.

  • Fund drought recovery activities

    Contribute to the cost of drought recovery activities including planting and/or restocking (when seasonal conditions allow).

  • Refinance debt

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

Loan terms

$2m
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 5 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.

Full terms and conditions are available in the loan guidelines.

Drought Loan brings relief to bee business

First-generation beekeeper Danny Le Feuvre used a concessional RIC loan to stabilise his business cash flow during a challenging time.

Read more about Danny's story

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)
  • own or lease land and use it for farming purposes (includes agistment)
Your business
  • 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 in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
  • undertakes all primary production aspects of the business wholly within Australia
  • 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
  • have a drought management plan
  • provide security for the loan
  • 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
  • purchase of and/or investment in non-farm assets and payment of non-farm expenses
  • paying out dividends
  • reimbursement for depreciation of assets tax or other statutory payments
  • your own labour costs
  • anything that you have already received government funding for (except to refinance debt from previous concessional loans)
  • any other non-eligible use listed in the loan guidelines

Eligible industries

The eligible primary production activities undertaken by a farm business to access RIC’s Farm Business loans, are those listed as part of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (Revision 2.0) codes for agriculture and aquaculture, with some exceptions.

View the details of primary production activities identified in DIVISION A – AGRICULTURE, FORESTRY AND FISHING of the industry classifications.

Before you apply

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Ask us a question

We are here to help

Apply

There are two ways to apply for a 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 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 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.

    Drought Loan Application Form

    Please note:

    • You can complete this form on a computer (Fillable PDF) or you can print it and fill it in by hand.

    • 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 are not able to save the form when opened in a browser.

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

    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

    Please note:

    • You can complete this form on a computer (fillable PDF) or you can print it and complete it by hand.

    • To use the fillable PDF application form you must download it to your desktop first. Right click on the link below 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 are not able to save the form when opened in a browser.

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

    Drought management plan

    You must include a drought management plan with your application.

    Your plan must outline how you will use the loan to prepare for, manage through or recover from drought.

    You can either:

    • attach your own plan to your application
    • use the template included in the application form
    • use the standalone template

    Drought management plan

    Drought management plan

    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

    Please note:

    • You can complete this form on a computer (fillable PDF) or you can print it and complete it by hand.

    • To use the fillable PDF application form you must download it to your desktop first. Right click on the link below 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 are not able to save the form when opened in a browser.

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

    Drought management plan

    You must include a drought management plan with your application.

    Your plan must outline how you will use the loan to prepare for, manage through or recover from drought.

    You can either:

    • attach your own plan to your application
    • use the template included in the application form
    • use the standalone template

    Drought management plan

    Drought management plan

    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.