The Strategic Banking Corporation of Ireland (SBCI) is limited in terms of its ability to bring loan schemes to market by the inability of the market to absorb more than one scheme at a time, according to the SBCI’s chief executive, Nick Ashmore.
Ashmore made the point as he spoke at a meeting of the Joint Oireachtas Agriculture Committee yesterday evening (Tuesday, September 4).
He explained that a new low-cost loan scheme is being worked on by a cross-departmental group that includes: the Department of Agriculture, Food and the Marine; the Department of Business, Enterprise and Innovation; and the Department of Finance.
This cross-departmental group is also working very closely with the European Investment Fund (EIF) and the European Investment Bank (EIB), as well as being involved in “early discussions” with banks as well, Ashmore added.
Speaking at the meeting, the SBCI’s chief executive said: “I would say that we are limited in terms of our ability to bring schemes to market by the inability of the market really to absorb more than one scheme at a time.
We delivered the Agriculture Cashflow Support Loan Scheme, we then delivered the Brexit Loan Scheme and now we are in the process of working out and delivering the next scheme – which, as the minister said, is focused on long-term capital investment and finance.
A total of €25 million was allocated in Budget 2018 for the introduction of a new low-cost loan scheme for farmers; a scheme which has yet to come to fruition.
Pre-clearance
Meanwhile, Ashmore indicated that any new low-cost loan scheme for farmers will require prospective applicants to receive pre-clearance and eligibility confirmation from the SBCI before they can approach a bank – as has been the case with the Brexit Loan Scheme.
“The pre-clearance facility means that, in the future, applicants to SBCI loans will come to the SBCI first for pre-clearance and eligibility confirmation.
“Once they have that, it gives them a certificate that says: ‘I carry a guarantee with me for this loan’.
That means the discussion with the bank around the type of loan they can get is a different discussion. It’s like walking in with a big bunch of assets on your back saying: ‘Look, this is my security for the loan; I have an SBCI guarantee for this’.
“We’re looking to try and move forward in terms of how we deliver and improve these products,” he said.
Ashmore explained that pre-clearance and eligibility confirmation forms are available to download on the SBCI’s website and can be emailed back.
The SBCI also operates a full-time support line that actively walks customers through the Brexit Loan Scheme application at the moment, he concluded.