Farmers applying for concessional loans through a $2 billion federal kitty have been forced to wait an average of more than six months for processing.
The auditor-general found the Regional Investment Corporation took an average of 113 days to make decisions after loan applications were lodged in the second quarter of 2019/20.
For loans that were settled in that quarter the average processing time was 184 days.
Wait times have increased in every period since the RIC started operating in July 2018.
Of the 30 complaints RIC received to the end of last year, 87 per cent related to timeliness, poor communication or cumbersome processes.
The corporation is trying to cut down delays through more interaction with banks and deciding on agreements faster.
A total of $387 million across 376 farm loans has been approved in the RIC's first 18 months of operation.
It was slated to dish out $500 million annually for farm businesses over four years.
At the end of 2019, 210 loans worth $232 million had been approved halfway through the financial year.
In 2018/19, 166 loans were approved, totalling $156 million.
While the government championed a $4 billion headline figure when the RIC was created, there have been no loans under the $2 billion pot of cash for state government water projects.
The NSW government has expressed interest in loaning $284 million for two dams but discussions are continuing.
The Australian National Audit Office found inaugural chair David Foster quit over a conflict of interest after being appointed to the Bendigo Bank board.
Mr Foster resigned nine days after declaring the conflict on September 10 during a private board meeting, which he continued to chair.
The auditor-general found the design of the RIC was effective and appropriate arrangements for delivering loans had been established.