$2 million loan to assist first start farmers and succession planning

The Federal Government backed lender, Regional Investment Corporation (RIC), have launched their anticipated AgriStarter loan to assist first time farmers and support farm succession plan arrangements.

Low interest loans of up to $2 million are available to encourage and support people in obtaining their first farming business.

The loan may be used to:

  • Fund the purchase of an existing farm business, land, infrastructure or other assets as part of developing a farm business
  • Fund the buyout of relatives during farm business succession
  • Support a new farming business by investing in infrastructure, cover operating expenses or refinance certain existing debt to improve cashflow

The terms of the loan are:

  • Maximum loan of $2 million
  • 10 year loan term (5 years interest only, 5 years principal and interest)
  • Variable interest rate of 1.92% per annum
  • No additional loan fees
  • At least 50% of your total debt must stay with a commercial lender

You may be eligible for this loan if you are seeking to purchase establish or develop a farm business for the first time, or if your farm business is undertaking a succession plan. There is currently no deadline for applying however it is recommended applications be submitted early due to forecasted high demand. The key to success with applying for funding with Government bodies such as the RIC is to be on the front foot with a well prepared application which anticipates their assessment requirements in advance.

We also recommend engaging early with your bank as it imperative to run both applications at the same time as 50% of the debt will need to be secured from the Bank in addition to the RIC lending. Managing the source of funding and security arrangements for both parties is an essential part of the loan approval process which often changes as lending requirement evolve and the two parties must work together to ensure success.

At Mazars we have supported numerous clients to successfully access RIC Loan funding for their rural enterprise. The low interest rates on offer are making a real difference in their farming operations, particularly with freeing up cashflow to paydown debt or re-invest back in the farm.

For assistance in considering your suitability, in submitting your application and supporting documentation please contact your usual Mazars advisor or alternatively our Loan specialists Angela Winton or Owen Dingle on:

Brisbane - Angela Winton / Owen Dingle

Melbourne - Brad Purvis

Sydney - Dean Newman

+61 7 3218 3900

+61 3 9252 0800

+61 2 9922 1166

* mandatory fields

Your personal data is collected by Mazars in Australia, the data controller, in accordance with applicable laws and regulations. Fields marked with an asterisk are required. If any required field is left blank, it will not be possible to process your request. Your personal data is collected for the purpose of processing your request.

You have a right to access, correct and erase your data, and a right to object to or limit the processing of your data. You also have a right to data portability and the right to provide guidance on what happens to your data after your death. Finally, you have the right to lodge a complaint with a supervisory authority and a right not to be the subject of a decision based exclusively on automated processing, including profiling, that produces legal effects concerning you or significantly affects you in a similar way.

Published: 11/01/2021

All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of the Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.