Business Improvement Concessional Loans

Business Improvement Concessional Loans are available to assist commercially viable farm businesses whose member(s) have, or will have exhausted, their full 1,095 day Farm Household Allowance (FHA) entitlement on or before 30 June 2018, to continue to improve the financial circumstances of the farm business.

The Australian Government is providing South Australia with a total of $10 million for the provision of:

for the 2017/18 application period.

Key features of the Business Improvement Concessional Loans scheme

  • Loans are for the purpose of debt restructuring.
  • Loan amounts will be up to 50% of the farm business final debt position to a maximum of $1 million.
  • A maximum loan term of 10 years, with interest only repayments for the first 5 years.
  • A variable concessional interest rate applies to the 10 year term of the loan.
  • The variable concessional interest rate is set by the Australian Government and reviewed every 6 months. As at 1 February 2018 the interest rate is 3.09%.
  • Principal and interest repayments apply from years six to ten of the loan, calculated on the basis of a 10 year loan term.
  • The farm business must repay or refinance the remaining loan balance at the end of the loan term.
  • Applications will close when funds are fully committed or on 30 June 2018, whichever occurs first.
  • *Applications can be submitted up to 30 days prior to exhausting their FHA payment entitlement.


To be eligible for a Business Improvement Concessional Loan you and your farm business must:

  • Have member(s) who have exhausted, or will have exhausted their 1,095 day FHA income support entitlement on or before 30 June 2018.
  • Demonstrate that they meet the Business Improvement Concessional loan eligibility criteria. Detailed information about the eligibility criteria for Business Improvement Concessional Loans is available in the Scheme Guidelines.
  • Complete and submit an application with all the necessary supporting documentation including evidence to demonstrate the following:
    • At least one member of the farm business has, or will have exhausted, their 1,095 day entitlement of FHA on or before 30 June 2018 (please provide written confirmation from the Department of Human Services (DHS)).
    • Their Farm Business is in financial need of a Business Improvement Concessional Loan.
    • The amount of Non-Farm Assets and Liquid Assets owned by the applicant or members of the Farm Business is not more than the amount needed for prudent risk management.
    • Have the support of your current commercial lender(s) if a Business Improvement Concessional Loan is approved.
    • Have the capacity to repay the loan.
    • Have sound prospects for commercial viability within the term of the loan.
    • Be able to provide satisfactory security for the loan.

Please read the Scheme Guidelines (PDF 375.3 KB) for full details.


PIRSA Prudential & Rural Financial Services:

Loan documents

Potential applicants are encouraged to contact PIRSA, Prudential & Rural Financial Services on 1800 182 235 or email to discuss their proposal and potential eligibility of their farm business.

This program is funded by the Australian Government and delivered by the Minister for Agriculture, Food and Fisheries through Primary Industries and Regions SA (PIRSA).

Other loans

Farmers may also be eligible for:

  • Drought Assistance Concessional Loans which assist commercially viable drought affected farm businesses to continue to operate through drought conditions, recover once the season breaks and prepare for future droughts.
  • Dairy Recovery Concessional Loans which assist commercially viable dairy farm businesses in South Australia impacted by the 2016 decisions of Murray Goulburn and Fontera to reduce farm gate milk prices.
Page Last Reviewed: 28 Mar 2018
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