Drought Loans Due To Change

FARM and agriculture businesses have until Wednesday, September 30, to apply for drought loans with a two-year interest free period.

Currently, loans of up to $2 million are available for farm businesses and up to $500,000 for agriculture dependent small businesses from the Regional Investment Corporation (RIC).

From October 1, loan terms will change to a five-year, interest-only period, followed by principal and interest for the remainder of the loan.

Member for New England, Barnaby Joyce, has urged debt-laden landholders and businesses to take advantage of the two-year interest free loans before terms change.

“This is a no-brainer,” Mr Joyce said.

“Farms and businesses which have taken on extra debt can get the government to pick up the cheque on interest payments for 24 months, obligation-free,” he said.

“If you’re an ag-dependent business, you can also use the no-interest loan period to pay suppliers, wages, rent or operating expenses while you get on top on your finances,” he said.

“Once the two-year period ends, you pay interest only for the next three years, then principal and interest for the remaining five years of the ten-year loan term,” said Mr Joyce.

To qualify for the two-year interest free loan, applications must submit to the Regional Investment Corporation on or before Wednesday, September 30.