Open NowBusiness
Drought Loans
Australian Government · Australia
Drought Loans provide concessional loans of up to $2 million to eligible Australian farm businesses to help them prepare for, manage through and recover from drought. Loans are available through the Regional Investment Corporation and can be used for operating expenses, capital, refinancing existing debt and other drought-related activities.
Funding
Up to $2M
Deadline
Rolling / Ongoing
Duration
10 years
Location
Australia
Who Can Apply
• Be an Australian citizen or permanent resident
• Contribute or plan to contribute at least 75% of your labour to the farm business under normal circumstances
• Earn or plan to earn at least 50% of your income from the farm business under normal circumstances
• Own or lease land and use it for farming purposes, including agistment
• Have a drought management plan
• Provide security for the loan
• Secure the support of your commercial lender for the proposed loan
• 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 be in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
• Undertake all primary production aspects of the business wholly within Australia
• Be registered for tax purposes in Australia with an Australian business number and be registered for goods and services tax
• Operate as a sole trader, trust, partnership or private company
• 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, fund capital purchases, enhance productivity and undertake drought-related activities.Expected Outcomes
Farm businesses are expected to improve drought preparedness, maintain operations during drought, recover from drought impacts, enhance productivity and remain financially viable with capacity to repay the loan.Key Information
Applicant Types
sole_tradertrustpartnershipcompany
Stage
established
Funding Purposes
capital_expenditureothersustainability
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 concessional loans of up to $2 million to eligible Australian farm businesses to help them prepare for, manage through and recover from drought. Loans are available through the Regional Investment Corporation and can be used for 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 10 years.
3
Who is eligible for the Drought Loans?
- Be an Australian citizen or permanent resident
- Contribute or plan to contribute at least 75% of your labour to the farm business under normal circumstances
- Earn or plan to earn at least 50% of your income from the farm business under normal circumstances
- Own or lease land and use it for farming purposes, including agistment
- Have a drought management plan
- Provide security for the loan
- Secure the support of your commercial lender for the proposed loan
- 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 be in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
- Undertake all primary production aspects of the business wholly within Australia
- Be registered for tax purposes in Australia with an Australian business number and be registered for goods and services tax
- Operate as a sole trader, trust, partnership or private company
- 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, fund capital purchases, enhance productivity and undertake 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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