Open NowBusiness
Drought Loans
Australian Government · Australia
Drought Loans provide loans of up to $2 million through the Regional Investment Corporation for farm businesses to help prepare for, manage through and recover from drought. The loans can support operating expenses, capital, refinancing existing debt and other drought-related activities.
Funding
Up to $2M
Deadline
Rolling / Ongoing
Duration
up to 10 years
Location
Australia
Who Can Apply
• Applicant must be an Australian citizen or permanent resident
• Applicant must contribute or plan to contribute at least 75% of their labour to the farm business under normal circumstances
• Applicant must earn or plan to earn at least 50% of their income from the farm business under normal circumstances
• Applicant must own or lease land and use it for farming purposes, including agistment
• Applicant must have a drought management plan
• Applicant must provide security for the loan
• Applicant must secure the support of their commercial lender for the proposed loan
• Applicant must be able to repay the loan
• Farm business must be in financial need of a loan
• Farm business must have the capacity to repay the loan
• Farm business must be financially viable in the long term
• Farm business must have existing commercial debt
• Farm business must operate in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
• Farm business must undertake all primary production aspects wholly within Australia
• Farm business must be registered for tax purposes in Australia with an ABN and be registered for GST
• Farm business must operate as a sole trader, trust, partnership or private company
• Farm business must not be under external administration or bankruptcy
Applicants must be Australian citizens or permanent residents who contribute or plan to contribute at least 75% of their labour to the farm business and earn or plan to earn at least 50% of their income from it under normal circumstances. They must own or lease land used for farming purposes, have a drought management plan, provide security for the loan, secure support from their commercial lender, and be able to repay the loan. The farm business must be in financial need of a loan, have capacity to repay, be financially viable in the long term, have existing commercial debt, operate in agriculture, horticulture, pastoral, beekeeping or aquaculture, undertake all primary production wholly within Australia, be registered for tax purposes in Australia with an ABN and GST, operate as a sole trader, trust, partnership or private company, and not be under external administration or bankruptcy.
What's Funded
Eligible farm businesses can use the loan to feed and water stock, refinance existing debt, pay operating expenses or capital costs, enhance productivity, and fund drought-related activities.Expected Outcomes
Farm businesses are expected to improve drought preparedness, manage through drought conditions, recover from drought impacts, maintain operations, and remain financially viable with capacity to repay the loan.Key Information
Applicant Types
sole_tradertrustpartnershipcompany
Stage
established
Funding Purposes
capital_expendituresustainabilityother
Keywords
droughtfarm businessagricultureloanregional investment corporationprimary productionrefinancingoperating expenses
Frequently Asked Questions
1
What is the Drought Loans?
The Drought Loans is a business grant offered by Australian Government in Australia, providing Up to $2M in funding. Drought Loans provide loans of up to $2 million through the Regional Investment Corporation for farm businesses to help prepare for, manage through and recover from drought. The loans can support operating expenses, capital, refinancing existing debt and other drought-related activities.
2
How much funding does the Drought Loans provide?
The Drought Loans provides Up to $2M in funding. The typical project duration is up to 10 years.
3
Who is eligible for the Drought Loans?
- Applicant must be an Australian citizen or permanent resident
- Applicant must contribute or plan to contribute at least 75% of their labour to the farm business under normal circumstances
- Applicant must earn or plan to earn at least 50% of their income from the farm business under normal circumstances
- Applicant must own or lease land and use it for farming purposes, including agistment
- Applicant must have a drought management plan
- Applicant must provide security for the loan
- Applicant must secure the support of their commercial lender for the proposed loan
- Applicant must be able to repay the loan
- Farm business must be in financial need of a loan
- Farm business must have the capacity to repay the loan
- Farm business must be financially viable in the long term
- Farm business must have existing commercial debt
- Farm business must operate in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
- Farm business must undertake all primary production aspects wholly within Australia
- Farm business must be registered for tax purposes in Australia with an ABN and be registered for GST
- Farm business must operate as a sole trader, trust, partnership or private company
- Farm business must not be under external administration or bankruptcy
4
What activities are funded?
Eligible farm businesses can use the loan to feed and water stock, refinance existing debt, pay operating expenses or capital costs, enhance productivity, and fund drought-related activities.
5
How do I apply for the Drought Loans?
Start by checking your eligibility using the free Beta Docs eligibility checker. If eligible, Beta Docs' AI-powered platform can help you draft, review, and refine your application to maximise your chances of success.
Need help applying?
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