RIC Drought Hardship Loan now available

 

New applications for the new RIC (Regional Investment Corporation) Drought Hardship Loan are now open to help eligible Australian farmers facing prolonged drought to pay for operating expenses including wages and bills, fodder, water cartage, livestock or produce transport, so farmers can keep going despite the severe drought conditions they may be facing.

Farmers who have been in drought for at least two years and expect to be financially impacted by drought for the next 12 months may be eligible to borrow up to $250,000 at the current RIC variable interest rate of 5.18% over a five-year loan term.

There is nothing to pay in the first two years. Interest accrues during this time to be paid with principal and interest repayments from year three of the five-year loan term.

Visit RIC’s website for more information: https://www.ric.gov.au/ric-update/ric-drought-hardship-loan-applications-now-open-australian-farmers-prolonged-drought

 

About the Drought Hardship Loan

 

Farmers may be able to borrow up to $250,000 at the current RIC variable interest rate of 5.18% over a five-year loan term with nothing to pay in the first two years. Interest accrues during this time to be paid with principal and interest repayments from year three.

To help farmers recover and prepare throughout the full drought cycle, the existing RIC 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.