A farm business doesn’t need to weather years of drought hardship to qualify for a Regional Investment Corporation (RIC) Drought Loan to carry out drought preparation, management and recovery activities.
RIC CEO Bruce King said farm businesses seeking a loan for drought management or drought recovery could qualify provided they had experienced a minimum of 12 months of drought conditions with a financial impact on their business.
He said the criteria was especially applicable to West Australian farmers who had not faced dry conditions for as long as their eastern state counterparts but predict they may want to improve their drought resilience.
“The Drought Loan is for farm businesses that have been affected or will be affected by events outside their control,” he said.
“Farmers don’t need to suffer through years of low rainfall seasons before they’re able to apply for a Drought Loan from the Regional Investment Corporation and benefit from our affordable loan terms.
“For drought preparation activities, farming businesses need to demonstrate a financial need across a consecutive two-year period in the past, present or future.
“Drought Loan applications made on or before 30 September 2020 will also be eligible for two years’ interest free, three years’ interest only then five years’ principal and interest repayments over a 10-year loan term for amounts up to $2 million.
“New Drought Loan applications made after 30 September 2020 will be eligible for five years’ interest only at the low current variable rate of 1.92 per cent then five years’ principal and interest repayments over a 10-year loan term.