Interest-free Loan Scheme 2024

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This is a preview of the 2024 Dry season loan application form. When you’re ready to apply, click Fill Out Now to begin.
 

Guidelines, documentation to be provided and eligibility

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Objective of the scheme

  • On 26 April 2024, the Minister for Agriculture and Food announced a package that included $4 million in interest-free loans for farmers impacted by drought conditions.
  • Farm businesses impacted by the drought conditions can apply for a loan of $25,000 per business to help cover the cost of stockfeed, water, transportation, and other infrastructure that supports drought resilience.
  • The Department of Primary Industries and Regional Development (DPIRD) will administer the scheme on behalf of the Rural Business Development Corporation (RBDC).
  • The scheme offers an interest free loan of $25,000 to support eligible primary production businesses directly impacted by the current drought conditions.
  • No interest will be charged on the outstanding loan amount during the 5-year term of the loan.
  • Approved loans will be secured by a caveat, registered against acceptable real estate (property).
  • Loan terms will be a maximum of five years, with no repayments in the first two year period. The loan is to be repaid during years three to five by 6‑monthly payments or repaid in full earlier if the securing property is sold or at the request of the borrower.
  • The availability of loans is subject to funds being available.
  • The application closing date will be 30 November 2024 or when funding is fully committed, whichever occurs first.
  • Please refer to the Guidelines and Frequently Asked Questions (FAQs) before proceeding with an application.

Documentation you will need to upload to support your application

  • Certified copies of documents that satisfy the 100-point check requirements for the applicant, trustees, shareholders with greater than 25% shareholding, all authorised signatories (who would be signing a loan agreement), or persons with effective control.
  • Rates notice and/or lease/sharefarm agreement for the main farming property.
  • Most recent bank statement that matches the bank account nominated by the applicant to receive any approved funds.
  • Trust deed (if applicable).
  • Australian Securities and Investments Commission Annual Business Statement (if applicable)
  • Last two years individual taxation returns (that is, 2021-22 and 2022-23).
  • Last two years business tax returns (that is, financial years 2021-22 and 2022-23).
  • Quarterly Business Activity Statements (BAS) from the date of the last prepared financial statements for the applicant business.
  • Last two years (that is, financial years 2021-22 and 2022-23) balance sheets and financial statements of the applicant farm business, these include profit and loss statements, livestock trading account.
  • Lease and/or sharefarm agreements (if applicable)
  • Invoices that show expenditure of more than $25,000 that has been incurred since 1 October 2023 as a result of the dry season. Expenditure would be on stockfeed, water, transportation, or the establishment of feed silos, water tanks, improved irrigation systems, or any other infrastructure that supports drought resilience.
  • Written confirmation of all existing debt/s e.g. loan/bank statements.

Eligibility criteria

To be eligible you must be able to answer YES to all questions below.

If you answer NO to any question or you are unsure what the question means, please refer to the Guidelines and Frequently Asked Questions (FAQs) before proceeding with an application.

If you require further information please contact us via email at ruralbusiness.developmentunit@dpird.wa.gov.au

1. You operate a farm business on a property wholly within Western Australia * Required
Response required.
A farm business is a primary production business that excludes aquaculture, forestry and logging, fishing, hunting and trapping, and support services.
2. The applicant farm business is operational, solvent, not under administration or bankruptcy * Required
Response required.
3. The applicant farm business has had an ABN since 1 July 2021 and is registered for GST * Required
Response required.
ABN - Australian Business Number; GST - Goods and Services Tax
4. The applicant farm business operates as a sole trader, partnership, trust or private company * Required
Response required.
5. The owners or beneficiaries of the applicant farm business collectively earn more than 50% of their income from primary production in a normal year * Required
Response required.
6. At least 1 (one) member of the applicant farm business spends at least 50% of their time on the farm business * Required
Response required.
7. The applicant farm business generates a gross farm income between $150,000 and $2 million in a normal year * Required
Response required.
For example, income from sale of livestock, grain or other produce
8. The applicant farm business has a current equity ratio between 50% and 90%, and no greater than $5 million * Required
Response required.
This will include all off-farm assets and liabilities
9. Off-farm assets (excluding complying superannuation funds) total less than $2 million * Required
Response required.
10. The applicant farm business owners have not held funds in a Farm Management Deposit (FMD) account since 1 January 2024 * Required
Response required.
11. The applicant farm business can demonstrate it has incurred at least $25,000 of costs since 1 October 2023 due to the impact of the dry seasonal conditions * Required
Response required.
Includes costs such as feed and water for livestock, transportation of livestock etc

100 point identification check

A certified copy of documents that satisfy the 100 point check requirements for each person will need to be provided for

  • the applicant
  • trustees
  • shareholders with greater than 25% shareholding
  • all authorised signatories (who would be signing a loan agreement)
  • any other person/s with effective control of the applicant business

Important to note:

  1. Please indicate which documents are being provided for each person and upload these, preferably as individual pdf documents.
  2. Please check that you have uploaded documents totalling at least 100 points for each person listed.
  3. You must supply at least one (1) Primary document for each person listed.
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