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Are you a farmer in a drought declared area?

You may be eligible for an Australian Government Drought Loan of up to $2 million.

What are the loan details?
The term of the loan is 10 years. The first 2 years are Interest Free, the next 3 years can be Interest Only, and the last 5 years Principal and Interest is required. At the end of the 10 year term, any unpaid debt may be able to be refinanced with your bank.

What can you use the loan for?
Refinancing existing debt up to 50% or accessing new debt for operating expenses and capital expenditure.

What is the Interest Rate?
The current interest rate for this loan is 3.11%.

Here’s an example of how the loan could benefit you:
If you refinance a $500,000 bank debt with this new Regional Investment Corporation Drought Loan, and you are currently paying 5% interest, then this will save you $25,000 interest per year for the first 2 years that are Interest Free. In addition, it will continue to save you interest over the rest of the 10 year period, as the interest rate of 3.11% is lower than your bank interest rate.

BMO can help you
Don’t be overwhelmed by all the paperwork involved with these applications, let us help you complete the forms and required attachments ready for assessment. We have been successfully preparing similar applications for QRAA, QRIDA and now RIC over the past 30 years.

Register your interest by emailing us at team@bmo.com.au and we will contact you to arrange a meeting (at your place or ours) to discuss your application.

 

*UPDATE – LOANS NOW AVAILABLE FOR AGRIBUSINESSES*

RIC AgBiz drought loan applications are now open for small businesses that supply goods or services relating to primary production to farm businesses in affected areas.

The AgBiz Drought loan is designed to improve drought affected small businesses’ long-term strength, resilience and profitability through working capital and existing debt re-financing. The loan is valued at up to $500,000 over a 10-year period, with an interest free period of two years, followed by an interest-only period of three years, then five years principal and interest.

Full details here: https://www.ric.gov.au/agbiz-drought or give us a call and we can assist with your application.

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Adrian Rasmussen

About the author

Adrian has been with BMO for over 30 years. He commenced in 1988 as BMO’s first trainee, studying his Bachelor of Business Degree and CPA on the job. He has a strong local heritage, having grown up around Dalby. Adrian has an intimate understanding of business and primary production and his qualifications and experience are backed by his genuine care and concern for people and friendly sense READ MORE


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