The Government have launched the Agriculture Cashflow Support Loan Scheme which will make €150 million available to farmers throughout Ireland in he form of low interest rate loans at 2.95%.
It is funded by the Strategic Banking Corporation of Ireland (SBCI),
and supported by €25 million from the Department of Agriculture which includes €11 million in EU ‘exceptional adjustment aid’.
The loans will be for amounts up to €150,000 for up to six years. The interest rate will be 2.95% and the loans will be flexible with interest only facilities of up to three years.
If you are not a farmer – you can check out the Best Rates on Personal Loans here
AIB, Bank of Ireland and Ulster Bank will distribute these loans which will be allocated on a “first come, first served” basis and will need to be allocated by late summer 2017 to comply with the requirements attaching to the EU funding.
Who can apply?
The loans will be available to all livestock farmers, tillage farmers, horticulture producers (including mushroom growers) and others involved in primary agricultural production (including poultry producers).
To satisfy the requirements of the EU aid package, applicants will also need to satisfy at least one of the following eligibility criteria
1 Application of environmental and climate friendly production methods:
Currently participate in an agri-environment scheme as part of Ireland’s current or last Rural Development Programme (i.e. GLAS, BDGP, AEOS, REPS, Organic Farming Scheme or a locally-led EU agri-environmental scheme).
2. Implementation of quality schemes or projects aiming at promoting quality and value added:
Currently a certified member of a Bord Bia Quality Assurance Scheme.
Currently a certified member of a Quality Assurance Scheme run by a co-operative, processor or producer representative body.
3 Implementation of cooperation projects:
Currently a member of a DAFM-registered Farm Partnership.
4 Training in financial instruments and risk management tools:
Have successfully completed or am participating in DAFM’s Knowledge Transfer Programme or previous programmes such as BTAP and STAP (and specifically, the financial management elements of those programmes)
Have participated in financial training given by Teagasc (including the Cash Flow module included in recent farm walks), and can produce a certificate to this effect.
Have participated in financial training from another body (e.g. co-operative, processor, farming organisation, producer representative body or other providers of training) relating to the eligible agricultural sectors, and can produce a certificate to this effect.
These loans can be used for:
Working capital requirements
As a more sustainable alternative to short-term credit facilities
As an alternative to merchant credit.