Drought Hardship Loans Now Open

The Drought Hardship Loan is designed to support farm businesses that have managed through at least 24 months of drought and continue to face significant financial impacts. It provides concessional finance to help businesses manage essential operating costs and maintain cash flow during difficult conditions.

 Key points include:

•            a loan of up to $250,000 over five years for essential operating costs

•            a two-year interest and principal repayment holiday to support cash flow during hardship

•            variable concessional interest rate, currently 5.18%

•            loans delivered through the Regional Investment Corporation (RIC)

•            RIC loans are designed to sit alongside state and territory drought support, where eligibility requirements are met.

Further information on the Drought Hardship Loan, including eligibility requirements and how to apply, is available at ric.gov.au/ or by calling 1800 875 675.

 Information about broader Australian Government drought support is available at drought.gov.au.

FDF Communities Program

The Foundation for Rural & Regional Renewal (FRRR) and the Australian Rural Leadership Foundation (ARLF) have launched the Future Drought Fund’s new Communities Program, a $36 million Australian Government initiative designed to strengthen social resilience in agriculture‑dependent regions.

Building on previous drought resilience efforts, the new Communities Program introduces a range of tailored supports to help rural and regional communities prepare for future dry conditions. It includes:

  • Community Impact Program — launching in 2026 across 12 regions, combining grants, leadership development and coordinated local planning.

  • Regional Drought Resilience Plan (RDRP) Social Outcome Grants — up to $100,000 per approved region, supporting projects and activities identified in the region’s existing RDRP.

  • Small Network Grants — up to $50,000 for local government areas outside the Community Impact Program regions, assisting with events, training, network development and small‑scale infrastructure.

  • National Mentoring Initiative — a 12‑month virtual experience offering individuals the chance to build networks and share knowledge.

  • Capacity Building Initiative — to be co‑designed with communities to ensure locally relevant support.

 Applications are now open for the Small Network Grants and Regional Drought Resilience Social Outcome Grants.

To learn more or apply, visit: https://frrr.org.au/funding/fdf-communities