RADIO TRANSCRIPT: RIC CEO JOHN HOWARD SPEAKING TO 2GB RURAL NEWS EDITOR EMILY MINNEY ABOUT THE NEW RIC DROUGHT HARDSHIP LOAN APPLICATIONS NOW OPEN.
EMILY MINNEY: Now to the close up, new loans are on offer for drought-stricken farmers. The Regional Investment Corporation has launched its new Drought Hardship Loan for farmers living under drought conditions for at least two years. The loan of up to $250,000 can only be used to cover operational costs like wages, cutting water and purchasing fodder. I spoke with Chief Executive John Howard about the new offer.
JOHN HOWARD. It’s a Drought Hardship Loan for those people that have had extended periods of drought. So, unlike our existing drought loan product, which is more through the earlier stages, you must show a two-year impact. This new loan product is there to help those that have already had two years where they've been impacted by drought and looking at going into a third year. So, it is exciting for us to add to our portfolio of loan products to help people through those hard times.
EMILY MINNEY: Yeah, and I suppose this would cover a large number of farmers in namely Victoria and South Australia, is that correct?
JOHN HOWARD: Absolutely, those areas and also we're seeing in the southern part of New South Wales through the Riverina, there's been a large area there that's had pretty ordinary conditions the last two years. Some areas of Tasmania, some areas of southwest WA. So, most definitely South Australia and Victoria, the main ones. But definitely other areas through Australia.
EMILY MINNEY: Yes, so, you mentioned that the existing drought loans have been for more of the earlier stages of those drought conditions, whereas this one is for those prolonged periods of drought and dry conditions. So, what are some of the costs that this specific loan could cover?
JOHN HOWARD: Sure, so, this loan is only to be used for operating expenses. So, unlike the existing drought loan product that can be used to refinance your loans, this one is a $250,000 maximum loan product. You've got the first two years of that, there will be no repayments, but interest will be capitalised to your loan amount and to be repaid over the following three years. And that loan is there to be used for broad range of what I was saying, operating expenses. So, from wages and bills to buying fodder, carting water, transporting livestock or produce, all of those things that are such a high-cost component in those prolonged drought times to help through that extended period.
EMILY MINNEY: Yeah, so, how can farmers get access to this?
JOHN HOWARD: Sure, go to our website, all the information is there. You'll be able to check eligibility criteria. You'll be able to identify how to do an application. So, it's ric.gov.au and follow through our loan product links or call us on our contact centre number 1800 875 675. So, go to our website, or call us on the contact centre and someone will be able to assist you. Or on the website, all the information will be there for you to be able to work out if this loan is right for you.
EMILY MINNEY: That was Regional Investment Corporation Chief Executive John Howard speaking about new drought hardship loans.
- End -