Drought Response: Interest-Free Loans

Many agricultural regions in Western Australia are facing drought conditions due to unusually low rainfall and higher-than-average daytime temperatures since October 2023. In response, the Western Australian Government introduced a relief package that includes $4 million in interest-free loans for farmers affected by the drought.

Farm businesses impacted by the drought conditions can apply for a loan of $25,000 to help cover the cost of stockfeed, water, transportation, and other infrastructure that supports drought resilience.  

The loan is repayable over five years with no repayments for the first two years. 

Key information 

The Interest-Free Loans are administered by the Rural Business Development Corporation (RBDC) and are delivered through the Department of Primary Industries and Regional Development (DPIRD).  

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 five-year term of the loan. 

Loans are to be secured by a caveat, registered against an acceptable real estate property. 

Loans are for a maximum term of five years, with no repayments for the first two years. After the initial two years, the loan must be repaid during years three to five by five six 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 is 30 November 2024 or when funding is fully committed, whichever occurs first. 

How to qualify for a loan 

To qualify for an Interest-Free Loan, your farm business must demonstrate prospects of ongoing financial viability within the loan term. This means your business must generate sufficient net profit after covering variable and fixed expenses. Additionally, you must show the capacity to repay and secure the loan. 

To help complete your application, the following documents are available.

Application process 

Applications must be submitted online via SmartyGrants webpage. 

Apply online via the SmartyGrants website

If you need assistance with applying, please contact us for support via email or phone below.