Drought Relief Loan

Posted 27 Mar

Drought Relief Loans: Up to $100,000 now available for NSW Primary Producers

With ongoing dry conditions continuing to impact many regional areas, the NSW Government has opened applications for a Drought Relief Loan of up to $100,000 to support eligible primary producers across NSW.

This loan has been designed to provide faster and more flexible access to funding, helping farming businesses manage short‑term pressures while continuing to operate through challenging seasonal conditions.

Applications are now open and will remain available until program funding is exhausted, so eligible primary producers are encouraged to consider applying early.

What is the Drought Relief Loan?

The Drought Relief Loan is a low‑interest, fixed‑rate loan administered by the NSW Rural Assistance Authority (RAA). It is intended to support eligible NSW primary producers experiencing the impacts of drought, with simpler access than many traditional finance options.

Key features include:

• Loan amount: Up to $100,000
• Interest rate: Fixed (currently 4.66% per annum)
• Repayment term: Up to 5 years
• Upfront payment: Up to $25,000 available shortly after approval
• Security: No property or land security required
• Drawdown period: Up to 6 months

These features are aimed at improving cash‑flow flexibility at a time when many businesses are under financial pressure.

Who can apply?

The loan is available to eligible NSW primary production businesses operating as sole traders, partnerships, trusts or private companies.

To meet the income criteria, applicants must generally earn at least 50% of their gross income from primary production, or have earned at least $75,000 in one year from their primary production activities.

Eligibility is assessed by the RAA as part of the application process, and primary producers are encouraged not to self‑assess or assume they are ineligible without applying.

What can the loan be used for?

Funds from the Drought Relief Loan can be used for a wide range of drought‑related expenses, including:

• Animal welfare costs, such as feed, water and related infrastructure
• On‑farm infrastructure improvements
•  Environmental improvements supporting sustainability and land management

The RAA Program Guidelines provide further detail on eligible and ineligible expenses and should be reviewed before applying.

How payments and claims work

Once an application has been approved, the RAA will provide instructions on how to submit claims for eligible expenses. Invoices must be submitted within six months of the application approval date. Appropriate documentation should be retained for all expenses claimed.

What you’ll need to apply — and how we can assist

As part of the application process, applicants are required to provide a range of financial and business documents. These may include:

• Most recent tax returns and financial statements
• A current list of assets and liabilities
• LGA and LLS rates notices (if available)
• Trust deed (if applicable)
• A 12‑month monthly cashflow budget

This is where our team can assist. While we don’t assess or approve loan applications, we can help you prepare or review the required financial information, and discuss how the loan may impact your business finances and repayment capacity.

If you’d like to discuss whether this loan may be appropriate for your circumstances, or if you’d like assistance preparing your financials and budget for an application, please contact our team.

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