$500,000 Drought loans for farm-dependent small businesses

$500,000 Drought loans for farm-dependent small businesses

Loans of up to $500,000 will be available with a two-year interest-free period. Following those first two years, concessional interest-only payments will apply before principal and interest payments are required in the final five years of the 10-year loan term.

The Australian Government continues to support small businesses affected by the ongoing drought in many parts of Australia. As drought continues to hit small businesses across rural Australia, the RIC’s AgBiz Drought Loans will offer financial relief.

The new Regional Investment Corporation (RIC) loans for farm-dependent small businesses are now available. Ken O’Dowd MP, the Federal Member for Flynn has welcomed the news reiterating the fact that farm businesses and farm-dependent small businesses are essential to the functioning of rural communities. Mr O’Dowd said;

“Small businesses are the lifeblood of our regional communities and they’re doing their best to serve farm businesses also affected by this drought. Those businesses – livestock transporters, equipment repairers, harvesting contractors – can use these small business drought loans to refinance existing debt or just keep their businesses going until the drought breaks.”

Guidelines and application forms for the drought loans will be available on the RIC’s website www.ric.gov.au

This is in conjunction with the small businesses assistance package for those affected by bushfires.

This initial package responds to the needs expressed by small businesses on the ground and at the small business roundtable last week which saw chambers of commerce from fire-affected regions, the Australian Chamber of Commerce and Industry and the Council of Small Business Organisations Australia come together with the Government to discuss the impacts of this natural disaster on small business.