FARM FINANCE: CONCESSIONAL LOANS SCHEME S GUIDELINES … · Concessional Loan is provided? 5. Can...

FARM FINANCE: CONCESSIONAL LOANS SCHEME

These guidelines relate solely to the Concessional Loans Scheme of Farm Finance in Victoria

SCHEME GUIDELINES FOR VICTORIA

FOR FURTHER INFORMATION:

Telephone 1800 260 425

Fax 03 5441 8901

Email [email protected]

Post GPO Box 1313

Bendigo Central Victoria 3552

Website www.ruralfinance.com.au

mailto:[email protected]

http://www.ruralfinance.com.au/

Page 2 of 19

FARM FINANCE: CONCESSIONAL LOANS - VICTORIA

Table of contents FARM FINANCE: CONCESSIONAL LOANS SCHEME AT A GLANCE ................................................................................... 4

1 OVERVIEW ...................................................................................................................................................... 5

1.1 OBJECTIVE ....................................................................................................................................................... 5

1.2 CONCESSIONAL LOANS ................................................................................................................................... 5

1.3 OUTCOMES ..................................................................................................................................................... 6

2 APPLICATION PERIOD ..................................................................................................................................... 6

3 COSTS ............................................................................................................................................................. 7

4 FUNDING AVAILABILITY .................................................................................................................................. 7

5 FREQUENCY OF APPLICATIONS ....................................................................................................................... 7

6 HOW TO APPLY AND KEY DATES ..................................................................................................................... 8

7 LOAN ASSESSMENT ......................................................................................................................................... 8

8 ELIGIBILITY CRITERIA FOR LOAN ASSESSMENT ................................................................................................ 9

8.1 EXISTING DEBT RESTRUCTURING CONCESSIONAL LOAN BORROWERS ............................................................ 9

9 ELIGIBLE ACTIVITIES ....................................................................................................................................... 10

10 LOAN ASSESSMENT CRITERIA ......................................................................................................................... 11

11 SECURITY ....................................................................................................................................................... 12

12 CONCESSIONAL LOAN CONDITIONS ............................................................................................................... 13

12.1 LOAN TERMS .................................................................................................................................................. 13

12.2 CONCESSIONAL INTEREST RATE ..................................................................................................................... 13

12.3 CONCESSIONAL LOAN PAYMENT ................................................................................................................... 13

12.4 LOAN REPAYMENT ......................................................................................................................................... 14

12.5 EXTENUATING CIRCUMSTANCES .................................................................................................................... 14

13 LOAN AGREEMENT ......................................................................................................................................... 15

13.1 CONTRACTING ARRANGEMENT AND LOAN TERMS AND CONDITIONS ........................................................... 15

13.2 LOAN REVIEWS .............................................................................................................................................. 15

13.3 INFORMATION REQUIREMENTS ..................................................................................................................... 15

14 DECISION MAKING ......................................................................................................................................... 16

14.1 NOTIFICATIONS .............................................................................................................................................. 16

FARM FINANCE: CONCESSIONAL LOANS – SCHEME GUIDELINES FOR VICTORIA 3

14.2 REVIEW PROCESS ........................................................................................................................................... 16

14.3 CONFLICT OF INTEREST .................................................................................................................................. 16

15 ONUS ON THE APPLICANT .............................................................................................................................. 17

16 PRIVACY STATEMENT ..................................................................................................................................... 17

17 DISCLAIMER ................................................................................................................................................... 17

18 MONITORING AND EVALUATION ................................................................................................................... 18

19 REVIEW OF GUIDELINES ................................................................................................................................. 18

20 DEFINITIONS .................................................................................................................................................. 18


Farm Finance: Concessional Loans Scheme at a glance

Key features of the Concessional Loans Scheme:

loans of up to $650 000 in total for eligible Farm Businesses to restructure existing Farm

Business debt and/or for eligible productivity enhancement activities

a minimum loan amount of $100 000 is available for productivity enhancement activities

loan term of up to five years

variable concessional interest rate initially set at 4.5 per cent

interest only payments are available for up to five years

full repayment of loans required at the end of the loan term

The availability of loans is subject to funds being available. The Scheme is capped at

$40 million in 2013–14 and $30 million in 2014–15 (total of $70 million). No more loans will

be offered once this cap is reached.

Should you read on?

To help decide whether you and your Farm Business are eligible to be considered for a Concessional Loan, you should answer yes to these questions:

1. Does my Farm Business have a demonstrated history of meeting its debt servicing requirements?

2. Is my Farm Business in need of assistance to meet its current debt servicing requirements or to enhance farm productivity?

3. Does my Farm Business have the ongoing support of its commercial lender(s)?

4. Can my Farm Business meet all its financial commitments over the next five years if a Concessional Loan is provided?

5. Can my Farm Business repay the Concessional Loan within five years, for example, through successfully obtaining commercial refinance?

6. Can my Farm Business provide sufficient security for the Concessional Loan?

To be eligible for a Concessional Loan, you must:

1. demonstrate that you and your Farm Business:

meet the eligibility criteria to be assessed for a Concessional Loan (see Clause 8)

meet the criteria for eligible debt or eligible Productivity Enhancement Activities (see Clause 9)

meet the Concessional Loan assessment criteria (see Clause 10)

2. complete and submit an application form (available at www.ruralfinance.com.au) with:

the required supporting documentation including confirmation of your long-term viability; and

a five year Business Plan

3. provide satisfactory security for the loan (see Clause 11).



Farm Finance: Concessional Loans Scheme

These guidelines relate solely to the Concessional Loans Scheme of Farm Finance in Victoria.

1 Overview

1.1 Objective

Farm Finance is an Australian Government initiative that aims to build the ongoing financial

resilience of Farm Businesses, including through the provision of Concessional Loans. In Victoria,

the Concessional Loans Scheme will assist Farm Businesses experiencing debt servicing

difficulties but are considered potentially viable in the longer term, by providing loans for them

to undertake debt restructuring and/or Productivity Enhancement Activities.

1.2 Concessional Loans

The Australian Government will provide $40 million in 2013–14 and $30 million in 2014–15

(a total of $70 million over two years from 2013–14) for the provision of Concessional Loans to

eligible Farm Businesses in Victoria.

On 1 July 2014, Bendigo and Adelaide Bank Limited (the “Bank”) completed the purchase of the

business and assets of the Rural Finance Corporation of Victoria (“RFCV”).

As a result, from 1 July 2014 onwards the business of RFCV will now operate as a division of the

Bank called “Rural Finance”.

Notwithstanding the sale of its business and assets to the Bank, RFCV will nevertheless continue

to operate as a state government entity, in a limited manner, acting as an intermediary between

the State Government of Victoria and the Australian Government and the Bank. RFCV will also

continue to enter into concessional loan agreements with approved Applicants under the

Farm Finance Concessional Loans Scheme in its own name using funds provided by the

Australian Government.

The division of the Bank called “Rural Finance” will however administer these loan agreements

on behalf of RFCV. In this capacity, the role of Rural Finance will include (but will not be limited

to):

receiving concessional loan applications;

undertaking concessional loan assessments in accordance with these Scheme Guidelines;

conducting farm visits;

disbursing loan funds to eligible loan recipients on behalf of RFCV;

managing on an ongoing day to day basis, all concessional loan accounts (including

arrears) consistent with the existing practices and procedures of RFCV.


Loans of up to $650 000 in total are available to eligible Farm Businesses to restructure existing

eligible debt and/or to undertake Productivity Enhancement Activities. A minimum loan amount

of $100 000 for Productivity Enhancement Activities is available. The approved loan amount will

be determined by Rural Finance.

Debt Restructuring Concessional Loans are only available to refinance Farm Business related

debt that has been established upon commercial interest rates and terms and conditions.

The purpose of assistance under the Productivity Enhancement Concessional Loans is to provide

Concessional Loans to eligible Farm Businesses to implement systems and management

practices that enhance productivity.

The Concessional Loans are available for loan terms of up to five years at a variable concessional

interest rate (initially set at 4.5 per cent). At the end of the loan term, Loan Recipients will be

required to repay their Concessional Loans. Under Extenuating Circumstances, loans may be

considered for a further term of no more than two years, however these loans will be subject to

commercial terms and conditions including principal and interest repayments.

The availability of loans is subject to sufficient funds being available. Once these funds are

expended, no more loans will be offered.

1.3 Outcomes

The intended outcomes for the Concessional Loans Scheme are that:

Farm Businesses able to demonstrate their need, their ability to repay a loan and that

they can provide sufficient security, are able to apply for a Concessional Loan

the full value of the loans is provided to Farm Businesses experiencing debt servicing

difficulties that are considered Commercially Viable in the longer term

receipt of a Concessional Loan provides the opportunity for Loan Recipients to improve

their debt servicing capacity and/or productivity.

2 Application period

Funds will be allocated in a single application period for each year in 2013–14 and 2014–15.

Details of each application period including the opening date, the closing date and the funds

available during each period will be determined by Rural Finance and announced and published

ahead of time on Rural Finance’s website (www.ruralfinance.com.au).


3 Costs

Applicants are responsible for all costs incurred in the preparation and lodgement of a Concessional

Loan Application.

Successful Applicants will be required to pay any actual costs associated with establishing and

maintaining the loan (e.g. statutory fees such as title searches, mortgage registrations, personal

property securities register searches and registrations and personal and corporate background

checks).

After the concessional interest rate period, Loan Recipients will be required to meet statutory

charges associated with debt refinancing such as mortgage discharge fees.

Loan Recipients entering into a revised loan agreement under Extenuating Circumstances will also

be required to pay usual commercial lending fees and charges.

4 Funding availability

The availability of Concessional Loans is subject to funds being available. The funds available under

the Concessional Loans Scheme are capped at $40 million in 2013–14 and $30 million in 2014–15

(total of $70 million). No more loans will be offered once this cap is reached in either year.

Funds will be allocated across each application period. If the funding allocations are fully committed

prior to the closing date of an application period, the application period will close early and no

further Applications will be considered in that period. If this happens, notification of the early

closure of the application period will be publicised on Rural Finance’s website and those who have

already lodged an Application will be advised in writing.

Any Uncommitted Funds in 2013–14 will not carry forward to 2014–15.

5 Frequency of Applications

If an Application was declined in 2013–14, Applicants can reapply in 2014–15 if their circumstances

have changed such that the reason for the declined Application no longer applies.

If an Application is declined in 2014–15, Applicants can reapply in that application period (if they

can demonstrate their circumstances have clearly changed such that the reason for the declined

Application no longer applies and if the application period is still open). A new Application will be

required to be submitted to Rural Finance, including all mandatory information and documents.

The new Application will be assessed in accordance with all other eligibility criteria and in order of

receipt with all other Applications.

If an Applicant has previously been declined assistance under the Concessional Loans Scheme in

any year and they choose to submit a new Application, they must provide clear evidence in their

submission that the reason for original decline no longer applies in order for the Application to

progress to full assessment.


6 How to apply and key dates

An application form and these guidelines are available on Rural Finance’s website

(www.ruralfinance.com.au).

Eligible Applicants should lodge completed Application forms including required documentation to

Rural Finance at:

GPO Box 1313

Bendigo Central Victoria 3552

Email: [email protected]

Fax: 03 5441 8901

Applications submitted by facsimile or email must be received by 5pm on the application period closing date. Posted Applications should be post marked or show other evidence of dispatch by no later than the closing time and date prescribed for each application period.

Applications lodged after the advertised application period closing dates in any other circumstances will be withdrawn.

If the funding allocated for an application period is fully committed before the closing date, all subsequent Applications will be withdrawn.

Details of application periods, including opening and closing dates and funding allocations will be available on Rural Finance’s website or by contacting Rural Finance on 1800 260 425.

7 Loan assessment

Completed Applications will be assessed in the order of receipt. Loan offers will be subject to the

availability of funds and are at the discretion of Rural Finance.

Rural Finance may liaise with the Applicant, their bankers and professional advisors as required to

confirm and verify documentary evidence and information provided.

Incomplete Applications will not enter the assessment queue until all required information is

provided by the Applicant.

If an Applicant does not provide the required supporting documentation, detailed in a checklist in

the application form, their Application will be withdrawn. Where necessary, Rural Finance has the

right to request further information from the Applicant to assess their Application. If the further

information requested is not provided within the required timeframe the Application assessment

will not be finalised and the application withdrawn.

Rural Finance may seek to visit and inspect a Farm Business to assist the assessment and decision

process.



8 Eligibility criteria for loan assessment

In order to be eligible to have their Application for a Concessional Loan assessed, Applicants must

have lodged a completed Application with all the required supporting documentation. As the funds

available under the Concessional Loans Scheme are capped, Applicants should note that lodging an

Application does not guarantee that they will receive a Concessional Loan.

Applicants will be assessed on the eligibility criteria in place at the time they lodge a completed

Application (noting that these criteria may be reviewed and amended in the future).

To be eligible for a Concessional Loan in Victoria, an Applicant must demonstrate that:

they have owned and operated the Farm Business for at least the past five consecutive

years, and their Farm Business:

o operates as a sole trader, trust, partnership or private company; and

o is involved within the agricultural, horticultural, pastoral, apicultural or aquacultural

industries; and

o is wholly located in Australia; and

o is registered for tax purposes in Australia with a Australian Business Number (ABN)

and is registered for GST; and

o is not a public company under the meaning of the Corporations Act 2001 (Cth); and

at least one Member of the Farm Business must be a Farmer who, under normal

circumstances, contributes at least 75 per cent of his or her labour and derives at least

50 per cent of his or her income from the Farm Business; and

the majority of their Farm Business is conducted in the state of Victoria; and

at least one Member of the Farm Business is an Australian resident; and

they have the ongoing support of commercial lender(s) with the Concessional Loan

assistance; and

their Farm Business is not under External Administration or bankruptcy; and

except as provided for in clause 8.1, the Applicant has not received a loan under the

Farm Finance: Concessional Loans Scheme in any jurisdiction.

8.1 Existing Debt Restructuring Concessional Loan borrowers

Eligible Applicants who have received an existing Concessional Loan for debt restructuring purposes

may apply for a further loan for debt restructuring or Productivity Enhancement Activities if:

they otherwise satisfy all other eligibility criteria and requirements in these Scheme

Guidelines;

the loan amount sought for Productivity Enhancement Activities is at least the minimum

loan amount of $100 000 set out at clause 1.2;


the sum of the loan amount borrowed under their existing Debt Restructuring Concessional

Loan plus the loan amount sought for debt restructuring or Productivity Enhancement

Activities does not exceed the total loan cap of $650 000 set out at clause 1.2.

9 Eligible activities

Debt Restructuring

Debt Restructuring Concessional Loans in Victoria are available to refinance Farm Business related

debt that has been established upon commercial interest rates and terms and conditions.

Examples of ineligible debt may include:

private or family debt not provided at arm’s length and at commercial interest rates and

terms and conditions

equipment finance facilities

non-balance sheet loans

funding of normal or additional working capital.

Productivity Enhancement Activities

Productivity Enhancement Activities include projects that enhance sustainable primary production

in Victoria.

Examples of eligible productivity enhancement activities include, but are not limited to:

enterprise build-up / expansion of existing operations or diversification of farm production

to improve profitability

purchase of livestock that will provide long term improvement to the Farm Business’s

productivity and profitability (e.g. breeding stock, farm business conversion programs)

reclamation of degraded areas underpinned by ongoing monitoring to deliver lasting

benefits directly linked to productivity and profitability

farm development including modernisation and efficiencies to farm production systems

(e.g. irrigation systems), infrastructure, machinery and plant and equipment (machinery and

plant/equipment must predominantly be for own use)

purchase of water or water rights to enhance farm production, but not for the purposes of

water-trading

drought and natural disaster preparedness and management projects including fodder

management, crop protection systems (e.g. hail nets), water storage, irrigation efficiencies

and management of waterways.


Examples of ineligible productivity enhancement activities may include, but are not limited to:

debt refinancing/restructuring

funding of normal or additional working capital

standard variable inputs (such as fodder, lime & chemicals)

off-farm investment

family succession arrangements

applicants own labour costs and operating costs of own machinery and plant

reimbursement of depreciation of assets

purchase of water rights for the purpose of water-trading

payment of tax, existing creditors and other statutory or legal payments

activities for which funding has previously been obtained from the Australian and/or state

governments including under the:

o Goulburn Valley Concessional Loans Program

o Food and Fibre Marketing Cooperative Grants Program.

10 Loan assessment criteria

Applications from Eligible Applicants for the Debt Restructuring Concessional Loans or Productivity

Enhancement Concessional Loans will be assessed by Rural Finance against the following loan

assessment criteria. Applicants will be assessed against the loan assessment criteria in place at the

time their completed Application is lodged (noting that these criteria may be reviewed and

amended in the future).

Debt Restructuring Concessional Loans

An Eligible Applicant for a Debt Restructuring Concessional Loan must demonstrate that:

their Application is for the reduction of eligible debt; and

they have taken all reasonable steps to service their Farm Business debt; and

their Farm Business has been and is continuing to experience difficulties servicing its debt;

and

they have a financial need for a Concessional Loan; and

their Farm Business has the capacity to repay the Concessional Loan and sound prospects

for a return to Commercial Viability within the term of the Concessional Loan; and

their Farm Business has the ongoing support of its current commercial lender(s) for the

availability of additional necessary carry-on finance; and


the amount of Non-Farm Assets and Liquid Assets owned by the Applicant or the Members

of the Farm Business is not more than the amount needed for prudent risk management;

and

they are able to provide satisfactory security acceptable to Rural Finance.

Eligible Applicants must also provide an acceptable Business Plan. Information required to be

included in the Business Plan is listed in the Concessional Loan Application form.

Productivity Enhancement Concessional Loans

An Eligible Applicant for a Productivity Enhancement Concessional Loan must demonstrate that:

their Application is for eligible productivity enhancement activities; and

they have taken all reasonable steps to service their Farm Business debt; and

their Farm Business has been and is continuing to experience difficulties servicing its debt;

and

they have a financial need for a Concessional Loan; and

their Farm Business has the capacity to repay the Concessional Loan and sound prospects

for a return to Commercial Viability within the term of the Concessional Loan; and

their Farm Business has the ongoing support of its current commercial lender(s) for the

availability of additional necessary carry-on finance; and

the amount of Non-Farm Assets and Liquid Assets owned by the Applicant or the Members

of the Farm Business is not more than the amount needed for prudent risk management;

and

they are able to provide satisfactory security acceptable to Rural Finance.

Eligible Applicants must also provide an acceptable Business Plan. Information required to be

included in the Business Plan is listed in the Concessional Loan Application form.

11 Security

Successful Applicants must provide RFCV with satisfactory security in accordance with Rural

Finance’s established security requirements.

The security provided must include:

a) a registered mortgage over land or other assets satisfactory to Rural Finance; and

b) any other security Rural Finance considers necessary.

Where applicable, assets provided as security must be insured (e.g. against fire) to the satisfaction

of Rural Finance.

Applicants are advised that RFCV, assisted by Rural Finance, reserves the right to act under its

securities where terms and conditions are not met or default occurs.


12 Concessional Loan conditions

12.1 Loan terms

the term of a Concessional Loan is up to five years

a variable concessional interest rate will apply to Concessional Loans

Successful Applicants must sign a Concessional Loan Agreement with RFCV and provide

security that is satisfactory to Rural Finance

Successful Applicants will be required to pay actual costs associated with the establishment

of the loan (e.g. searches and registrations)

Loan Recipients will be required to fully repay their Concessional Loan by the end of the loan

term

Full details of individual loan terms and conditions will be set out in the Concessional Loan

Agreement.

12.2 Concessional interest rate

A variable concessional interest rate will apply for the five years of each Concessional Loan. An

initial concessional interest rate of 4.5 per cent per year has been set by the Australian

Government as at 1 July 2013.

This rate will be reviewed and revised if necessary by the Australian Government on a

six monthly basis in accordance with material changes to the Commonwealth five year bond

rate. A material change is taken to be a movement of 10 basis points (0.1 per cent).

If the interest rate is changed, the change will be effective from 1 February and/or 1 August each

year as applicable, from 2014 on. Loan Recipients will be notified in writing and via Rural

Finance’s website when the changes take effect.

12.3 Concessional Loan payment

The full amount for Debt Restructuring Concessional Loans will be paid by Rural Finance on

behalf of RFCV to commercial lenders for the direct reduction of a Loan Recipient's approved

eligible debt as specified in the Concessional Loan Agreement.

Productivity Enhancement Concessional Loan payments will be made available to a Loan

Recipient by Rural Finance on behalf of RFCV in accordance with a signed Concessional Loan

Agreement and once security documentation has been provided to Rural Finance and the agreed

security has been finalised and/or registered.


12.4 Loan repayment

The repayment amounts and repayment frequency offered to Successful Applicants will be

determined by Rural Finance based on its assessment and will be detailed in the Concessional

Loan Agreement. The minimum repayment in the five year concessional period is the interest

component.

Conditions relating to loan repayments, arrears, defaults and penalties will be as detailed by

Rural Finance in the Concessional Loan Agreement. At any time during the five year term of the

Concessional Loan, Loan Recipients may prepay the whole or any part of their loan.

In circumstances where Loan Recipients enter into a revised loan agreement under Extenuating

Circumstances loan repayments will be on a principal and interest basis and usual commercial

lending fees and charges will apply.

In no circumstances can Loan Recipients redraw on repaid Concessional Loan amounts.

12.5 Extenuating Circumstances

At the completion of the Concessional Loan term any outstanding loan balance must be fully

repaid, unless a Loan Recipient can demonstrate Extenuating Circumstances to Rural Finance.

To be considered eligible by Rural Finance under Extenuating Circumstances, a Loan Recipient’s

Farm Business must:

demonstrate it is currently unable to access finance on normal commercial terms and

conditions to repay its Concessional Loan; but

be assessed as having sound prospects of being able to transition to normal commercial

lending arrangements within a period of no longer than two years from the expiry of the

Concessional Loan.

Loan Recipients who can demonstrate Extenuating Circumstances will be required to enter into a

revised loan agreement with a term of no more than two years from the expiry of the

Concessional Loan to repay their loan. RFCV will determine the applicable commercial interest

rate for the revised loan, including any adjustments to the rate. The revised loan agreement will

be subject to commercial terms and conditions. Loan Recipients will be required to make

principal and interest repayments and pay any other usual commercial fees and charges as

detailed in a revised loan agreement.


13 Loan agreement

13.1 Contracting arrangement and loan terms and conditions

Successful Applicants will be required to enter into a Concessional Loan Agreement with RFCV.

The Concessional Loan Agreement will be for the term of the loan. The Concessional Loan offer

may lapse, if not signed by the Successful Applicant, in a timeframe specified by Rural Finance.

Applicants should note that no contractual arrangement will exist with RFCV until a Concessional

Loan Agreement is signed by the Successful Applicant.

The terms and conditions of the Concessional Loan Agreement will be in accordance with these

guidelines and otherwise will be in accordance with RFCV’s standard commercial or other terms

and conditions of lending, if any (available on www.ruralfinance.com.au).

By signing the Concessional Loan Agreement, the Successful Applicant agrees that they are

subject to compliance requirements specified in the Concessional Loan Agreement.

If any information provided in the Application is found to be untrue, false, or misleading,

recovery action of the loan may be undertaken, the matter may be referred to the relevant law

enforcement authorities or regulator of the Victorian or the Australian governments for

prosecution of any civil or criminal offence. Applicants should be aware that giving false or

misleading information is a serious offence under the Criminal Code Act 1995 (Cth) or relevant

State equivalent.

It will be a condition of the Concessional Loan Agreement that if a Loan Recipient’s position or

circumstances change significantly during the term of the Concessional Loan this will entitle

RFCV or Rural Finance on behalf of RFCV to review the terms and conditions of the loan.

If a Loan Recipient’s position or circumstances change significantly, or there are any breaches of

the terms and conditions of the loan as specified in these guidelines and the Concessional Loan

Agreement, Rural Finance on behalf of RFCV may decide to initiate recovery or other remedial

actions as permitted under the Concessional Loan Agreement.

13.2 Loan reviews

Loans will be reviewed at least annually by Rural Finance to monitor compliance and ongoing

capacity of the Farm Business to meet the terms and conditions of the Concessional Loan

Agreement. The final loan review will include an assessment by Rural Finance of a Loan

Recipient’s capacity to repay the loan by the expiry of the Concessional Loan term.

13.3 Information requirements

Loan Recipients will be required to provide information in line with requirements as stipulated in

the Concessional Loan Agreement.


14 Decision making

In administering the Concessional Loans Scheme, Rural Finance will use its expertise to assess and

decide Applications for Concessional Loans, in accordance with these guidelines, its usual credit

assessment processes and any relevant Victorian legislation.

14.1 Notifications

Rural Finance will provide formal written notification of the assessment outcome to each

Applicant, including reasons for the decision to declined Applicants.

14.2 Review process

Requests to review a decision must be submitted in writing to Rural Finance within

20 business days of receipt of the original decision notification from Rural Finance.

Applicants should ensure they provide Rural Finance with sufficient information outlining the

reasons for their dissatisfaction with the decision. This should include:

specific information, verified by independent sources, confirming the basis of

disagreement with the original decision

factors an Applicant believes may have been overlooked by Rural Finance in determining

eligibility to receive a Concessional Loan

relevant information an Applicant believes may have assisted the original Application, but

may not have been included for consideration.

Within 30 business days of receiving a request for a review of a decision, Rural Finance will make

the decision regarding the review, and give notice to the Applicant of the review decision.

Written requests to review a decision should be forwarded to:

Rural Finance GPO Box 1313 Bendigo Central Victoria 3552

14.3 Conflict of interest

In line with RFCV and Rural Finance’s policy for managing conflicts of interest, RFCV and

Rural Finance will take all reasonable measures to ensure its officers involved in assessing and

making decisions in relation to Applications under the Concessional Loans Scheme do not have

any conflicts of interest.


15 Onus on the Applicant

Applicants are responsible for ensuring they have read and understood these guidelines and all

documents referred to in these guidelines.

Before applying for a Concessional Loan under this Scheme or making any decision, Applicants

should seek advice from their legal, business and financial advisors.

It is the Applicant’s responsibility, if successful, to ensure they have read and understood all aspects

of the loan conditions and the Concessional Loan Agreement terms and conditions.

Applicants should note that past financial assistance under any other program is not a reliable

indicator of eligibility for a Concessional Loan under this Scheme.

Applicants can contact the Australian Tax Office call centre to discuss business tax enquiries on

13 28 66.

16 Privacy statement

Information provided by Applicants may be used by RFCV, Rural Finance and/or the Australian

Government for administration of the Concessional Loans Scheme and assessment of an

Application. Provision of information (personal or otherwise) constitutes the Applicant's consent to

RFCV, Rural Finance and/or the Australian Government using the information for the above

mentioned purposes and any other incidental or related purpose. RFCV, Rural Finance and/or the

Australian Government may disclose your personal information to any party engaged in the

assessment or evaluation of the Concessional Loans Scheme in any jurisdiction. RFCV, Rural Finance

and/or the Australian Government will store personal information collected through the

Application, supporting documentation, the Concessional Loan Agreement and any monitoring and

evaluation activities in compliance with their respective obligations under the Information Privacy

Act 2001 (Vic) and the Privacy Act 1988 (Cth). Your personal information will not be disclosed

overseas. You may access or correct your personal information at any time by contacting

Rural Finance via email or in writing to the address provided on the front of these guidelines.

Further information about the relevant Australian Government privacy policy, including rights of

access and complaints handling, may be accessed at www.daff.gov.au/about/privacy or by calling

02 6272 3933.

17 Disclaimer

Neither RFCV or Rural Finance accept any common law duty of care towards Applicants in relation

to this Scheme or any information provided in relation to this Scheme and neither RFCV or

Rural Finance will be liable for any loss or damage however caused (including the negligence of

RFCV and/or Rural Finance), suffered or incurred by Applicants in connection with this Scheme or

any information provided by RFCV and/or Rural Finance in relation to this Scheme.


18 Monitoring and evaluation

The Australian Government will conduct an evaluation to determine the extent to which the

Concessional Loans Scheme is contributing to Australian Government policy objectives. Loan

Recipients may be requested to provide information to assist in the evaluation at times during the

loan period.

19 Review of guidelines

The Australian Government reserves the right to review, revoke or vary these guidelines, in

consultation with RFCV, at any time. Potential Applicants will be advised of revised guidelines

through Rural Finance’s website.

20 Definitions

Applicant: means an owner of a Farm Business that has lodged an Application for a Concessional

Loan.

Application: means the Concessional Loan Scheme application form and associated documentation

that an Applicant must complete and lodge with Rural Finance to apply for a Concessional Loan.

Business Plan: means a document which outlines how the Applicant intends to improve its Farm

Business’ future Commercial Viability with the support of the Concessional Loan over its loan term.

Concessional Loan: means a loan provided under the Concessional Loans Scheme at a concessional

interest rate made by RFCV to Successful Applicants utilising funds provided by the

Australian Government.

Concessional Loan Agreement: means the contractual agreement between a Successful Applicant

and RFCV which details the terms of the loan for the duration of the loan until fully repaid.

Commercial Viability: means a Farm Business is commercially viable when the business generates

sufficient net profit after fixed and variable expenses to:

service borrowings at commercial interest rates; and

allow investment on-farm to maintain the farm’s productive assets; and

provide for an adequate standard of living for its Members of the Farm Business; and

provide funds for investment which increases long-term productivity.

Eligible Applicant: means the Farm Business whose Application is eligible to be assessed for a

Concessional Loan, by Rural Finance, in accordance with these guidelines.

Extenuating Circumstances: refer to Clause 12.5

External Administration: means, in respect of a body corporate, that an administrator has been

appointed in accordance with the Corporations Act 2001 (Cth).

Farmer: means a person who has a right or interest in the land used for the purposes of a Farm

Business (as defined in the Farm Household Support Act 1992 (Cth)).


Farm Business: means a business that:

a) operates as a sole trader, trust, partnership or private company; and

b) is involved within the agricultural, horticultural, pastoral, apicultural or aquacultural

industries; and

c) is wholly located in Australia; and

d) is registered for tax purposes in Australia with an Australian Business Number (ABN) and is

registered for GST; and

e) is not a public company under the meaning of Corporations Act 2001 (Cth).

Farm Finance: means an Australian Government initiative that aims to build the ongoing financial

resilience of Farm Businesses.

Farm Management Deposits: means a Scheme provided by the Australian Government to assist

primary producers to deal more effectively with fluctuations in cash flow.

Liquid Assets: means immediate funds, including cash immediately available in personal and

business bank accounts, term deposits, shares, Farm Management Deposits and other financial

accounts.

Loan Recipient: means a Successful Applicant that receives a loan through the Concessional Loan

Scheme.

Member(s) of the Farm Business: means a person who has a right or interest in a Farm Business.

Non-Farm Assets: means the net value of any asset not essential to the effective running of the

Farm Business, including land or property, residential (not used as the primary place of residence)

or business, for the Applicant or any Member of the Farm Business (as applicable), excluding life

insurance policies and superannuation, provided the superannuation is in a complying

superannuation fund for the purposes of the Superannuation Industry (Supervision) Act 1993 (Cth).

Productivity Enhancement Activity: means an activity that improves the long-term productivity and

viability of the farm business. Further details about eligible and ineligible Productivity Enhancement

Activities are set out in clause 9.

RFCV means the Rural Finance Corporation of Victoria, a statutory authority of the

Victorian Government established under the Rural Finance Act 1988 (Vic), delivering the

Concessional Loans Scheme in Victoria.

Rural Finance means the business or trading name used by Bendigo and Adelaide Bank Limited. The

role of Rural Finance in delivering the Concessional Loans Scheme in Victoria is set out in clause 1.2.

Successful Applicant: means an Eligible Applicant that satisfies the loan assessment criteria and has

been offered a loan through the Concessional Loans Scheme.

Uncommitted Funds: means allocated funds for an application period that have not been

committed to provide Concessional Loans to Successful Applicants.

Date post:	23-Jul-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

FARM FINANCE: CONCESSIONAL LOANS SCHEME S GUIDELINES … · Concessional Loan is provided? 5. Can...

Documents