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.
• Drought loans provide farm businesses with loans to help them prepare for, manage through and recover from drought.
• Pay for operating expenses or capital
• 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.
• 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
• Secure the support of your commercial lender for the proposed 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
• 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.
• Loans to cooperatives engaged in processing and storing primary product
• Low-interest loans for small business disaster recovery
• Rebates for wa businesses employing new indigenous employees

What the funding covers

• Loans up to $2 million.

How to apply

1. 1Confirm readiness: Ensure you meet criteria (e.g., ABN, turnover limits, GST registration), align project objectives with grant goals, and estimate time for evidence gathering and writing.
2. 2Gather evidence: Collect documents like financials, business plans, market research, project budgets, resumes, risk analysis, and support letters to prove capability and impact.
3. 3Register/log in: Obtain an Australian Business Number (ABN) if needed, sign into the relevant portal (e.g., Business Grants Hub portal), and note any prerequisites like advisory service reports.
4. 4Prepare and write application: Address all selection criteria clearly (project details, government alignment, costs, outcomes, benefits); keep concise, factual, and compelling; validate for completeness.
5. 5Review, approve, and submit: Proofread, get stakeholder sign-off, submit online via the portal before deadline (no late entries); expect eligibility check, merit assessment, and outcome notification.
6. 6Visit https://business.gov.au/grants-and-programs/drought-loans for application details

Application tips