What is the Farm Investment Loans?
The Farm Investment Loans is a program that provides farm businesses with loans to help build and maintain a strong, resilient and profitable business.
The Australian Government, through the Regional Investment Corporation, is providing concessional loans to eligible farm businesses. Farm businesses must be in need of financial assistance and have sound prospects of long-term financial viability.
The new farm business loans replace and build on previous Commonwealth-funded concessional loans, including the Farm Finance, Drought, Drought Recovery, Drought Assistance, Dairy Recovery and Business Improvement Concessional Loans. The new loans also complement a range of other support and risk management measures provided by the Australian Government.
The Farm Investment Loans aims to support the long-term strength, resilience and profitability of Australian farm businesses. These loans are available to help eligible farm businesses build and maintain diversity in the markets they supply and take advantage of new and emerging opportunities across Australia and overseas.
Loans of up to $2 million over a period of 10 years are available. Repayments over the first 5 years are interest only, then principal and interest for the remaining 5 years. After 10 years, any remaining balance on the loan can be refinanced with a commercial lender.
The loans may be used to:
- strengthen your farm business
- access markets interstate or outside Australia
- prepare for, manage through or recover from drought
- refinance existing debt
- pay for operating expenses or capital
- enhance productivity
- fund drought-related activities
To be eligible, you must:
- be an Australian citizen or permanent resident
- contribute at least 75% of your labour to the farm business (under normal circumstances)
- earn at least 50% of your income from the farm business (under normal circumstances)
Additionally, the farm business you are running must:
- solely or mainly sell products into supply chains that are interstate or outside Australia, or plan to in the future
- have existing commercial debt
- be registered for tax purposes in Australia with an Australian business number (ABN) and be registered for goods and services tax (GST)
- be in financial need of a loan
- have the capacity to repay the loan
- operate as a sole trader, trust, partnership or private company
- be in the agriculture, horticulture, pastoral, apiculture, or aquaculture industry
Applications open on an ongoing basis.