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Drought loans

​​​​​​Who can apply

Farm business owners in an eligible area

Amount

Up to $2 million

When

Apply anytime

​​​Eligibility

You can only apply for this loan if you are in an eligible area of Australia.

You​​

  • are an Australian citizen or permanent resident
  • contribute at least 75% of your labour to the farm business (under normal circumstances)
  • 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
  • has existing commercial debt
  • is financially viable in the long term
  • is in the agriculture, horticulture, pastoral, apiculture, or aquaculture industry
  • 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

Purpose

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

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
  • anything that you have already received government funding for (except to refinance debt from a previous concessional loan)
  • any other non-eligible use listed in the loan guidelines

Loan terms

Quick facts

Amount Up to $2 million Term 10 years
Early settlement No fee Interest rate ​3.11% variable rate
Apply Anytime Application fee No fee
Extra repayments No fee Redraw Not available​

Additional 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 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.

Full terms and conditions are available in the loan guidelines.

Before you apply

You need to check

You must provide

Ask us a question

We are here to help

Apply

  1. Check the information you will need to provide. Please note, a common cause of loan assessment delay is missing information. 
  2. Talk to your commercial lender. Let them know you plan to apply for a RIC loan.
  3. Gather the required information.We can’t start assessing your application until we get all the information we ask for, including attachments.
  4. Submit your application to us at loans@service.RIC.gov.au or send to: Regional Investment Corporation, PO Box 796, Bendigo, VIC 3552.

If you have any questions we encourage you to talk to our loan assessment team. You can call them on 1800 875 675

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

After you apply

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

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

Help centre

Do you have a question?

Our online help and support centre may have the answer.

Browse our help topics.

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:

Application form

Complete the application form and send it with supporting documents to loans@service.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.

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:

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

Download:

​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:

Loan Types

You may also be eligible for Farm investment loans

 

Statutory Declaration

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

Download:

Eligible area

Your farm business must be in an eligible area.

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

Check our map to see if your farm business is in an eligible area. ​​​You must include a copy of this map showing your location when you apply.

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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