RIC (Regional Investment Corporation) today welcomed the announcement from Federal Minister for Agriculture, Fisheries and Forestry, Julie Collins that RIC Drought Hardship Loan applications are now open, complementing existing RIC low-interest loans, including its Drought Loan.
RIC Chief Executive Officer, John Howard, said the Drought Hardship Loan offers financial relief to help eligible farmers affected by long-term drought to manage through and recover.
"Drought adds significant financial pressure on farmers and their communities especially when conditions are severe and prolonged. The Drought Hardship Loan is designed to keep farmers farming with nothing to pay in the first two years, interest accrues in this time to be paid later," Mr Howard said.
"Australian farmers who have been affected by long-term drought for at least two years and expect to be financially impacted by drought for at least the next 12 months may be eligible to borrow up to $250,000 at the current RIC variable interest rate of 5.18 per cent over a five-year loan term.
"The Drought Hardship Loan is used to pay for operating expenses, from wages and bills to buying fodder, carting water and transporting livestock or produce, so farmers can keep going despite the drought conditions they may be facing," Mr Howard said.
To help farmers recover and prepare throughout the full drought cycle, RIC's existing Drought Loan enables eligible producers to borrow up to $2 million over 10 years, with interest-only payments in the first five years and principal and interest repayments for the remaining five years.
This new loan broadens RIC's low-interest loan offering which includes the Drought Loan, Farm Investment Loan, AgriStarter Loan for first farmers and succession planning and the Agbiz Drought Loan for farm-related small businesses supplying farmers affected by drought.
RIC loans are available nationally and an eligible farm business may only hold up to $3 million across previous and existing government-funded concessional loans including RIC loans. To apply for RIC loans, farm businesses need to have commercial debt, be able to repay the loan, provide adequate security and be able to demonstrate a financial need.
"Every day our RIC Agri Lending Specialists support farmers across Australia who are facing tough financial times. Since start-up in 2018, we have been proud to deliver low-interest loans to more than 3,550 Australian farm businesses valued at over $3.76 billion, helping them prepare for and navigate the challenges of drought, natural disasters, first time farming and succession planning.
"This new loan expands the RIC loan support available, offering practical relief so farmers can improve their cash flow and make plans with greater certainty for the future," explained Mr Howard.
The Drought Hardship Loan is part of the Australian Government's additional $1 billion commitment to new RIC loan funding beyond the current financial year so farmers can continue to access low-interest loans in times of need.
Drought-affected farmers are encouraged to learn more about eligibility criteria and how to apply at ric.gov.au/drought-hardship or call RIC on 1800 875 675 to discuss your situation.
