Drought Carry-on Finance Loans
Key program information
Total loan amount available
Interest only payments for first 2 years
Up to 10
Year loan term
What assistance is available?
Queensland based primary producers who have been significantly affected by drought may be eligible for a Drought Carry-on Finance Loan to assist with carry-on finance.
Producers may only receive one loan in any five year period up to a maximum of $250,000.
The loan may be used for working capital expenses, such as paying employee wages, paying creditors, paying rent and rates and buying goods for carrying on the business.
The maximum combined outstanding loan balance under both the Emergency Drought Assistance Loan and the Drought Carry-on Finance Loan is $250,000.
Am I eligible?
To be eligible for a Drought Carry-on Finance Loan, applicants must:
- demonstrate at least one person in the primary production business is a primary producer
- have carried on the primary production business for at least 12 months
- have taken reasonable precautions to minimise the effect of drought on the primary production business
- demonstrate they can service the loan
- demonstrate financial assistance is required because the primary production enterprise has been significantly financially affected by drought
- demonstrate the primary production business cannot support carry-on from existing cash and other liquid resources, or from within existing available commercial lending facility limits
- present a Farm Business Resilience Plan, satisfactory to QRIDA within a reasonable period of time.
To be eligible for a loan applicants must also not have:
- made an application to the Department of Agriculture and Fisheries supported by an invoice issued in the past six month period for assistance under:
- a freight subsidy under the Drought Relief Assistance Scheme or
- the Emergency Water Infrastructure Rebate under the Drought Relief Assistance Scheme
- a loan that is current under the Scheme and
- received a loan under the Scheme in the past five years.
How can the loan be used?
The Drought Carry-on Finance Loan may be used for working capital expenses, including:
- paying employee wages
- paying creditors
- paying rent and rates
- buying goods, including fuel, for carrying on the business.
Read the Drought Carry-on Finance Loan guidelines for further information.
Take this example...
After receiving an Emergency Drought Assistance Loan, Bill realises the $50,000 isn’t enough because his property has been significantly affected by drought. He knows his primary production business cannot support carry-on from existing cash and other liquid resources, or from within existing available commercial lending facility limits.
After speaking with QRIDA about other support available, Bill is told about the Drought Carry-on Finance Loan which is available for the same reasons as the Emergency Drought Assistance Loan. Bill estimates he’d need an additional $150,000 to continue meeting his essential capital working expenses.
Gathering his supporting documentation, Bill submits an application with the help of his Regional Area Manager and is approved for the loan.
View the current interest rates here.
What information do I need for my application?
The following information is required to complete your Drought Carry-on Finance Loan application:
- Financial Statements for the past 3 years including:
- Profit and Loss Statement
- Livestock Trading Schedule
- Balance Sheet
- Depreciation Schedules
- Statement of Position
- Personal/Income Tax Returns for the past 3 years
- Monthly Cash Flows for the Current and Next Financial Year (July – June)
- Production Schedules. See QRIDA templates on forms and downloads page.
- Australian Tax Office (ATO) Integrated Client Account Statement
- Schedule of Account Details form all lenders (found on last page of application form)
- A Farm Business Resilience Plan will be required within a reasonable period of time. Please note, the requirements for a Farm Business Resilience Plan are available on the DAF website.
Please do not mail original documents as we are unable to return them.
How to submit my application?
Applications for the Drought Carry-on Finance Loan must be submitted to QRIDA by the following:
Post: GPO Box 211 Brisbane Queensland 4001
Fax: 07 3032 0300
QRIDA is administering the Drought Carry-on Finance Loan Scheme on behalf of the Department of Agriculture and Fisheries.
Frequently asked questions
Yes. However, you must be operating separate primary production enterprises under separate Australian Business Numbers (ABN). As part of the assessment, QRIDA will confirm these are eligible separate businesses.
A Farm Business Resilience Plan will be requested within a reasonable period of time. A Farm Business Resilience Plan helps to:
- recognise risks associated with production, including climate and weather (such as drought)
- identify business risks, including financial and market factors, and how to respond to those risks and
- understand personal risks such as workplace health and safety.
DAF have a range or resources available including a Farm Business Resilience Plan template, guidance notes and an informational video on how to complete your plan.