Farmers doing it tough due to factors outside their control can now access government-backed low interest loans of up to $2 million.
Up until this week, the maximum amount a farmer could borrow from the RIC was $1 million. The instructions from government have changed, and eligible farmers can now borrow up to $2 million from the RIC.
Since launching on 1 July 2018, the RIC has been out talking to farmers and trusted financial influencers about our farm business loans and applications have started to come in.
“Our loans can be used for a variety of farm-related activities including refinance existing commercial debt, or accessing new debt for operating expenses and capital improvements,” interim CEO Matt Ryan said.
“There’s a lot of interest in refinancing existing debt with the RIC, as the savings are significant – the difference between our 3.58% rate and a commercial rate puts an extra $40,000 into a farmer’s pocket each year when borrowing $2 million.
“Other farmers want to access new debt for operating expenses and capital improvements like paying bills, buying feed, desilting dams, planting new crops or agisting livestock.
“Don’t be reluctant to talk to your bank about refinancing with us. We are taking a partnership approach with the banks, and are getting word out to them about how we will work together for the benefit of the farmer.
“I know this is a busy time, and farmers may assume they’re not eligible for our loans, but they’d be surprised. Instead visit ric.gov.au or call us on 1800 875 675 and tell us about your situation and what your business needs are. Our team is here to help.”
Media Contact: Liz Rodway | 0439 699 791