The Regional Investment Corporation (RIC), backed by the Australian Government, are providing farmers and farm-related small businesses with loans at low interest rates. These include:

• AgriStarter Loan
• Drought Loan
• Farm Investment Loan
• AgBiz Drought Loan

Further details for each loan are provided below. If you have any questions in relation to the RIC loans or would like assistance in applying, please do not hesitate to contact us on 1300 620 345.

Agristarter Loan

Who is it for?

AgriStarter Loans are to assist first time farmers and loans to support farm succession arrangements.

Am I eligible?

You can apply for a first farmer loan if:

• you are seeking to purchase, establish or develop a farm business in which you hold or will hold the sole or a controlling interest.

You can apply for a succession loan if:

• you are a farm business, or
• you are a farm business successor – that is, you have recently inherited or will inherit an interest in a farm business, or have recently acquired or will acquire an interest in a farm under a succession plan
• you are a farm asset successor – that is, you hold the sole or a controlling interest in a farm business, and have recently inherited or will inherit farm assets, or have recently acquired or will acquire farm assets under a succession plan.

What can I use this loan for?

• Fund the purchase of an existing farm business, including land, infrastructure and other farm business assets
• Fund the purchase of land, infrastructure and other farm business assets as part of establishing or developing a farm business
• Buy out relatives during farm business succession
• Pay costs associated with the succession planning process
• Pay for legal costs or stamp duty

If you recently purchased a farm business, or received it as part of succession arrangements and are seeking capital to get it up and running, you can use this loan to:

• invest in new infrastructure, machinery or productivity enhancements
• cover operating expenses
• refinance certain existing debt at our low interest rate to improve cash flow

What are the terms of the loan?

You can borrow up to $2 million at a 1.77% variable interest rate with a 10-year term. Interest-only repayments for the first five (5) years and principal and interest repayments for the final five (5) years.

When do I have to apply before?

You can apply at anytime.

Drought Loan

Who is it for?

Drought Loans are to help farm businesses to prepare, manage and recover through drought.

Am I eligible?

You can apply for a Drought loan if your farm business meets all of the following eligibility criteria:

• Farm businesses must have a drought management plan;
• Farm businesses that are in financial need of a loan;
• Farm businesses with sound prospects of ongoing financial viability; and
• Additional eligibility criteria

What can I use this loan for?

• refinance your debt
• pay for operating expenses or capital
• access new debt for operating expenses and capital

What are the terms of the loan?

You can borrow up to $2 million at a 1.77% variable interest rate with a 10-year term. Interest-only repayments for the first five (5) years and principal and interest repayments for the final five (5) years.

When do I have to apply before?

You can apply at anytime.

Farm Investment Loan

Who is it for?

Farm Investment Loans are for farmers who want to invest in a better future. They’re designed to make farm businesses stronger, more resilient and more profitable.

Am I eligible?

To be eligible for a Regional Investment Corporation (RIC) farm investment loan, your farm business must:

• solely or mainly supply, or intend to solely or mainly supply, products into supply chains that are interstate and/or outside Australia;
• be in financial need of a loan;
• be financially viable in the long term;
• have existing commercial debt; and
• meet the eligibility criteria in these guidelines.

What can I use this loan for?

• refinance your debt
• pay for operating expenses or capital
• enhance your productivity
• fund drought-related activities

What are the terms of the loan?

You can borrow up to $2 million at a 1.77% variable interest rate with a 10-year term. Interest-only repayments for the first five (5) years and principal and interest repayments for the final five (5) years. The rate of repayment is structured so that the farm business does not have to repay the full principal in the final 5 years. At the end of the loan term, your farm business will need to refinance the remaining loan balance.

When do I have to apply before?

You can apply at anytime.

AgBiz Drought Loan

Who is it for?

AgBiz Drought Loans are to support regional Australians to take control of their business through the drought.

Am I eligible?

You may be eligible for an AgBiz Drought loan if:

• Your business has fewer than 20 employees other than casual employees;
• Your business is not a farm business;
• A substantial part of the turnover of your business is or has been from supplying, to farm businesses in affected areas, goods or services relating to primary production by those farm businesses; and
• As a consequence of drought affecting farm businesses in affected areas, there has been a:
  1. material reduction in the turnover of your business; or
  2. a material increase in unsecured debt to your business by farm businesses

What can I use this loan for?

• refinance your debt
• pay for operating expenses or capital
• enhance your productivity
• fund drought-related activities

What are the terms of the loan?

You can borrow up to $500,000 at a 1.77% variable interest rate with a 10-year term. Interest-only repayments for the first five (5) years and principal and interest repayments for the final five (5) years.

When do I have to apply before?

You can apply at anytime.