The prolonged drought has had a dramatic impact on farmers and farming communities. In order to enable farmers to press on through the drought, the Federal Government has through the Regional Investment Corporation (RIC), introduced a new new AgBiz Drought loan.
The loans for up to $500,000 over 10 years have two years interest free and no repayments, followed by three years interest only repayments, then five years principal and interest repayments.
Eligible small businesses are those that directly provide primary production related goods and services to farm businesses in drought. Examples of eligible small businesses could include harvesting and fencing contractors, stock and station agents, and businesses dealing in agricultural equipment and repairs.
RIC CEO, Bruce King said the AgBiz Drought loan is designed to improve the long-term strength, resilience and profitability of small businesses that supply farm business through refinancing existing debt and working capital.
The AgBiz Drought loan represents the first RIC product offered to small businesses in the agriculture sector. Previously only farm businesses have been eligible.
Small businesses in the Goulburn Valley whose business has been affected in any way by the drought should make enquiries with the Regional Investment Corporation at http://www.ric.gov.au/agbiz-drought.
