ECIRS Assessment Criteria

1.	The farm business is located within an EC declared area of Tasmania (including buffer zones), the applicant's property was affected by drought, and the farm business is in financial difficulty due to the drought, OR The small business is in financial difficulty due to the impact of the drought on farm businesses, or farming clients, in EC declared areas of Tasmania (including buffer zones). In considering whether a farm/small business is in financial difficulty, DPIW must consider (i) the total amount of interest payable per annum, (ii) the estimated farm/small business surplus over the medium term, and (iii) the applicant's equity in the farm/small business in relation to the amount of current and future indebtedness, together with his/her total assets and income. When considering whether a farm business is in financial difficulty due to the drought, DPIW must disregard the ability of the farm business to purchase farming property since the beginning of the drought.
2.	For a farm business, the support is necessary to achieve improvements in productivity (including for recovery purposes), the provision of carry-on finance, and/or debt restructuring, OR For a small business, the support is necessary to achieve improvements in business viability, business continuity, and/or debt restructuring.
3.	Without the support the farm/small business would not have the capacity to achieve or maintain long-term viability. In assessing the likelihood of the farm/small business being viable in the long-term, DPIW must take the following factors into account:

		(i)	the expected future capacity of the farm/small business to operate profitably (without Government assistance) as measured by its ability to meet, from estimated surpluses, its future financial commitments relating to: the farm/small business operating costs; living costs of the farm family or small business owner’s family; servicing of the farm/small business debts; future capital requirements for plant and improvements; and investment requirements to return the farm/small business to financial viability.
		(ii)	the long-term economic trends which impact on the farm/small business
		(iii)	the demonstrated technical, financial and business management performance of the applicant responsible for the relevant farm/small business; and
		(iv)	the provision of financial support for the farm/small business by commercial lenders through the drought and beyond.

Definitions

‘Farm business’ means a business carried on by a farmer within the farm sector.

‘Small business’ means a commercial enterprise with less than 100 full time employees, or equivalent, that is not a farm business.

Exceptional Circumstances Interest Rate Subsidy (ECIRS)

This page - http://www.dpipwe.tas.gov.au/inter.nsf/WebPages/CART-7697B7?open - was last published on 12 September 2009 by the Department of Primary Industries, Parks, Water and Environment. Questions concerning its content can be sent to PI Enquiries by using the feedback form, by mail to GPO Box 44, Hobart, Tasmania, Australia 7001, or by telephone to 03 6233 6439.

Please read our disclaimer and copyright statements governing the information we provide on this site.

A text version of this page is also available.