Drought Loans

About this grant

Drought Loans provide loans of up to $2 million through the Regional Investment Corporation (RIC) for farm businesses to help prepare for, manage through and recover from drought.

Eligibility requirements

All of the following criteria must be met:

• Eligible farm businesses.
• Overview
• Drought Loans provide farm businesses with loans to help them prepare for, manage through and recover from drought.
• The loans may be used to:
• feed and water stock
• refinance existing debt
• pay for operating expenses or capital
• enhance productivity
• fund drought-related activities
• Loans of up to $2 million over a period of 10 years are available. The first 5 years will be interest only, followed by 5 years principal and interest. After 10 years, any remaining balance on the loan can be refinanced with a commercial lender.
• Check if you can apply
• To be eligible, you must:
• be an Australian citizen or permanent resident
• contribute or plan to contribute at least 75% of your labour to the farm business (under normal circumstances)
• earn or plan to earn at least 50% of your income from the farm business (under normal circumstances)
• own or lease land and use it for farming purposes (includes agistment)
• have a drought management plan
• provide security for the loan
• secure the support of your commercial lender for the proposed loan
• repay the loan.
• Additionally, your farm business must:
• be in financial need of a loan
• have the capacity to repay the loan
• be financially viable in the long term
• have existing commercial debt
• be in the agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
• undertake all primary production aspects of the business wholly within Australia
• be registered for tax purposes in Australia with an Australian business number (ABN) and be registered for goods and services tax (GST)
• operate as a sole trader, trust, partnership or private company
• not be under external administration or bankruptcy.
• Apply now
• Apply for the Drought Loans
• Find out more about your eligibility and how to apply.
• Learn how to apply
• Contact information
• Phone:
• 1800 875 675
• Email:
• info@ric.gov.au
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What the funding covers

• Loans up to $2 million.

How to apply

1. 1Visit https://business.gov.au/grants-and-programs/drought-loans for application details

Application tips