October 9, 2015
Drought-affected farmers across Queensland can now apply for assistance through a Drought Concessional Loan or a Drought Recovery Concessional Loan, following the announcement of the opening for the 2015-16 application round.
With up to 80 per cent of the state now recognised as being in drought, the new loans have been designed to assist farm businesses financially impacted by the effects of drought.
The Australian Government has made $30 million available for Drought Concessional Loans and up to $15 million for Drought Recovery Concessional Loans in 2015-16.
Key features of the Drought Concessional Loans Scheme:
- Loans are for eligible farm businesses for the purposes of restructuring existing eligible debt (including a Farm Finance Concessional Loan), providing new debt for operating expenses or drought recovery and preparedness activities, or a combination of these
- Loan amounts will be up to 50% of total eligible debt to a maximum of $1 million
- The variable concessional interest rate is currently set at 3.05% (from August 2015)
- Maximum loan term is five years, and interest-only payments available for the loan term
- The farm business must repay or refinance the remaining loan balance at the end of the loan term
Key features of the Drought Recovery Concessional Loans Scheme:
- Loans are for eligible farm businesses for the purposes of planting and restocking
- Loan amounts will be up to 50% of total eligible debt to a maximum of $1 million
- The variable concessional interest rate is currently set at 2.71% (from August 2015)
- Maximum loan terms of ten years apply, with interest-only repayments for the first five years
- Principal and interest repayments apply from years six to ten of the loan, calculated on the basis of a 10-year loan term
- Refinance or repayment is required by the end of the loan term.
The combined maximum loan amount available under the Drought Recovery Concessional Loans Scheme, Farm Finance Concessional Loans Scheme and Drought Concessional Loans Scheme will be up to 50 per cent of eligible debt to a maximum of $2 million in total.
Within this, the amount for the Drought Recovery Concessional Loan component cannot exceed $1 million.
The availability of loans is subject to funds being available, and the scheme will close to applications on 30 June 2016.
The Drought Concessional and Drought Recovery Loan Schemes are initiatives of the Australian Government and delivered by QRAA.
Farm businesses wishing to apply must ensure they submit complete applications, because applications are assessed in order of receipt and only complete applications can enter the assessment queue.
Scheme guidelines, application forms and Rainfall Deficiency Reports are available at qraa.qld.gov.au
Farm businesses are strongly urged not to self-assess. QRAA Client Liaison Officers are available to meet on-farm to discuss eligibility requirements, loan guidelines and the application process.
For further information, or to book an appointment with a Client Liaison Officer, contact QRAA on Freecall 1800 623 946.
