Document ID: chunk:federal_register_of_legislation:F2019C00466:reg:8
Version: federal_register_of_legislation:F2019C00466
Segment Type: reg
Provision Reference: reg 8
Character Range: 6051–7893

8  Grant of Agribusiness Natural Disaster Loans—farm business experiencing extreme hardship

Eligibility requirements—extreme hardship
 (1) The Corporation may grant a loan to a farm business where the Corporation is satisfied that:
 (a) the business is an eligible farm business; and
 (b) the business has lost all, or the majority, of its stock or crops as a result of the North and Far North Queensland Monsoon Trough (25 January to 14 February 2019); and
 (c) the loan will assist the business to do one or more of the following:
 (i) replace its lost stock or crops;
 (ii) replant crops;
 (iii) restore or replace on-farm infrastructure lost or damaged as a result of the Monsoon Trough;
 (iv) meet operating expenses relating to damage arising out of the Monsoon Trough;
 (v) refinance its existing debt.
Example: The operating expenses referred to in subparagraph (c)(iv) include expenses such as the costs of transporting livestock or produce during and directly after the floods, the costs associated with obtaining other finance (such as an overdraft or line of credit) to enable the farm business to continue operating, and the costs of obtaining any alternative accommodation required as a result of the floods.

Loans may be used to refinance or acquire new debt
 (2) The grant of a loan under subsection (1) may result in the farm business holding up to 100% of its total debt in Commonwealth-funded concessional loans (including by refinancing up to 100% of its existing commercial debt).
Note: The business's total debt is the sum total of debt established on commercial terms, at commercial interest rates, plus all Commonwealth funded concessional loans provided to the farm business. 'Commonwealth funded concessional loans' includes the Commonwealth loans identified in the program guidelines published under section 14.