A new low-cost loan scheme ‘The Future Growth Loan Scheme’ for business enterprises and farmers is expected to be up and running within weeks.
According to the Department of Agriculture, Food and the Marine, the Strategic Banking Corporation of Ireland (SBCI) has just issued an open call inviting banks and other lenders to take part in the scheme for business owners and farmers that was expected to be made available at the beginning of 2019.
AgriLand understands the call has a closing date of February 11, 2019 and a period of due diligence will follow that which will include the European Investment Fund. During that time the fund is expected to agree operational requirements for the scheme with the banks.
‘The Future Growth Loan Scheme’ will be allocated through financial providers and allow for €300 million in investment loans to Irish businesses including farmers and farming enterprises.
- Applications for eligibility under the scheme will be made through the SBCI website. The SBCI will assess the applications and those successful will be issued an eligibility reference number.
- Apply for a loan under the scheme with one of the participating finance providers using the eligibility reference number.
In a statement to AgriLand, the department said loans would be “competitively priced” over an eight to 10 year period. It also stated the scheme would support strategic long-term investment in a post-Brexit environment.
A spokesperson added: “It will also serve smaller-scale farmers who often do not have the leverage to negotiate for more favourable terms with their banking institution.”
Meanwhile, loans must be used for investment in tangible or intangible assets for the purpose of process and organisational innovation, or investment in tangible and intangible assets on agricultural holdings linked to primary agricultural production.
“This is a long-awaited source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security,” the spokesperson concluded.