Small businesses supplying drought-affected farms can now apply through the Regional Investment Corporation (RIC) for low-interest loans of up to $500,000 over 10 years.
Minister for Drought and Rural Finance David Littleproud announced the new AgBiz Drought Loan scheme, which opened today.
The AgBiz Drought Loan is designed to improve the long-term strength, resilience and profitability of small businesses reliant on farming through refinancing existing debt and working capital.
Small businesses that directly provide primary production-related goods and services to farm businesses in drought - such as harvesting and fencing contractors, stock and station agents, and businesses dealing in agricultural equipment and repairs – may be eligible for the loans, which have a two-year interest free period.
The AgBiz Drought loan is the first RIC product offered to small businesses in the agriculture sector. Previously only farm businesses have been eligible.
CEO Bruce King said there had been a significant response to its existing Drought Loan launched in July 2018 for drought-affected farmers, with 190 loans valued at approximately $173 million already approved this financial year.
For more information visit www.ric.gov.au/agbiz-drought