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Concessional loans are available to eligible primary producers who have suffered losses as a result of physical bushfire damage to their property and who are assessed to be in need of financial assistance. Each case will be assessed on its merits. Primary producers will need to demonstrate that the majority of their time and capital is devoted to the farming operation and in normal circumstances the major portion of their income is derived from the farm. The farming operation should have reasonable prospects of profitable trading in the future including a capacity to service borrowings. Rural Finance will work closely with the banking sector to develop suitable financial packages to meet individual requirements. As well as essential working capital finance, loans may be made for the replacement of lost or damaged structures, livestock, fodder and equipment. Loans will bear a concessional interest rate for an initial period not exceeding five years. In the first instance the rate will be 3.2% per annum. At the end of the five year concessional period, loans for purposes other than working capital may be extended for a further period of up to ten years, but the interest rate on any extended loan will be subject to review and will be set at, or close to, commercial interest rates prevailing at that time. Any application for loan assistance will have regard for insurance recoveries and the financial resources available to affected applicants. Loans of up to $200,000 are available for primary producers. Adequate security will be required for any lending. Application fees will not apply. To apply for the Bushfire Assistance Loan the Bushfire Application Loan – Primary Producers should be completed and lodged by Wednesday 30 June 2010. Completed applications should be forwarded to: If required, a Rural Finance officer will be in contact for a further discussion, which may include a personal interview or on-site visit.
March 2010 |
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