The Regional Investment Corporation (RIC) AgriStarter Loan has launched and loan applications are now open. The AgriStarter Loan has two uses, supporting new farmers to purchase, establish or develop their first farm business, or assist existing farm businesses with succession planning arrangements.
RIC CEO Bruce King said that the AgriStarter Loan provides affordable terms to support eligible new and intergenerational Australian farmers to purchase a new farm business, establish or develop their farm business or enter an existing farm partnership.
“The RIC is pleased to launch the AgriStarter Loan to support new farmers. The interest only repayments, at a low variable rate for the first five years will certainly appeal to new farm business owners to allow them to focus on establishing their operation and their cash flow.
“The AgriStarter Loan can assist new farmers to buy, establish or develop a farm business, as well as help farming families undertake their succession planning.
“The AgriStarter Loan is also available to eligible farmers who have recently purchased a farm business yet need a loan to invest in infrastructure or machinery to develop their farm business and make it their primary income earning source,” said Mr King.
“At the RIC, we believe the AgriStarter Loan will contribute to a stronger and more diverse agricultural industry through affordable finance for new Australian farmers.”
The AgriStarter Loan allows up to $2 million to be borrowed over 10 years with at least 50 per cent of an applicant’s total debt required to be held with their existing bank. The first five years of an AgriStarter Loan are interest only, then the remaining five years are principal and interest repayments. The current variable rate is 1.92 per cent.
The Federal Government has provided $75 million for AgriStarter Loan applications this financial year. For more information about the AgriStarter Loan, including loan guidelines, eligibility criteria and the loan application form, visit ric.gov.au/agristarter.
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About the Regional Investment Corporation The Regional Investment Corporation (RIC) is a Federal Government-backed specialist finance provider for farmers and farm-related small businesses. For the financial year to 30 November 2020, the RIC has approved more loans in the past five months than the total of the previous financial year combined. With more than 690 loans valued at over $720 million approved (as at November 2020) this financial year, compared to a total of more than 640 loans valued at $725 million (for the whole of the 19/20 financial year). Since its inception on 1 July 2018, the RIC has approved total loans valued at more than $1.6 billion as at 30 November 2020.