BOI, one of the banks taking applications for the €150m agri-loan scheme, has notified the Irish Farmers Journal of the most common mistakes farmers make when applying for the scheme.
With an allocation of €65m, BOI has the largest individual share of funds available from the scheme.
The bank said that in the first week of the operation of the scheme it has seen a “very strong interest and demand” from farmers, with a wide variation in loan purposes.
Ineligible loan purposes
However, a number of farmer customers have applied for ineligible loan purposes under the scheme, it added. These include land purchase, future farmyard development, breeding stock, machinery finance and repayment of existing farm loans.
The bank has said in order to make the loan draw-down process as quick as possible, it is encouraging farmers to ensure that they are fully aware of the eligible loan purposes under the scheme, which are outlined below:
To fund future working capital requirements (eg feed, fertiliser, trading stock and other costs).As an alternative to merchant/trade credit (eg refinance of existing balances with a co-op/agri merchant or the finance of future working capital used to fund feed, fertiliser and seed required over the coming 12 months).To replenish cashflow already used (prior to 31 December 2016) to fund farm capital investment (eg land and machinery purchase, as well as land drainage and farmyard development costs).Common mistakes on forms
The bank has added that some applicants have made errors when completing the application form so a number of forms have had to be returned for a wide variety of reasons. It is encouraging farmers to consider the following when they are filling out the forms so the process is simple and transparent:
Issue: incomplete NACE code. Guidance note: only one code should be quoted by referring to page 4 of the form.
Issue: more than one herd number, etc, quoted. Guidance note: only state the herd number, etc, under which the application is being made.
Issue: incomplete declaration of eligibility. Guidance note: must tick one of four eligibility criteria.
Issue: incomplete declaration of de minimis aid. Guidance note: must be completed even when aid is nil.
Issue: overlooking personal data consent. Guidance note: must tick the box on page three.
Read more
Cheap loans scheme: what you need to know
BOI, one of the banks taking applications for the €150m agri-loan scheme, has notified the Irish Farmers Journal of the most common mistakes farmers make when applying for the scheme.
With an allocation of €65m, BOI has the largest individual share of funds available from the scheme.
The bank said that in the first week of the operation of the scheme it has seen a “very strong interest and demand” from farmers, with a wide variation in loan purposes.
Ineligible loan purposes
However, a number of farmer customers have applied for ineligible loan purposes under the scheme, it added. These include land purchase, future farmyard development, breeding stock, machinery finance and repayment of existing farm loans.
The bank has said in order to make the loan draw-down process as quick as possible, it is encouraging farmers to ensure that they are fully aware of the eligible loan purposes under the scheme, which are outlined below:
To fund future working capital requirements (eg feed, fertiliser, trading stock and other costs).As an alternative to merchant/trade credit (eg refinance of existing balances with a co-op/agri merchant or the finance of future working capital used to fund feed, fertiliser and seed required over the coming 12 months).To replenish cashflow already used (prior to 31 December 2016) to fund farm capital investment (eg land and machinery purchase, as well as land drainage and farmyard development costs).Common mistakes on forms
The bank has added that some applicants have made errors when completing the application form so a number of forms have had to be returned for a wide variety of reasons. It is encouraging farmers to consider the following when they are filling out the forms so the process is simple and transparent:
Issue: incomplete NACE code. Guidance note: only one code should be quoted by referring to page 4 of the form.
Issue: more than one herd number, etc, quoted. Guidance note: only state the herd number, etc, under which the application is being made.
Issue: incomplete declaration of eligibility. Guidance note: must tick one of four eligibility criteria.
Issue: incomplete declaration of de minimis aid. Guidance note: must be completed even when aid is nil.
Issue: overlooking personal data consent. Guidance note: must tick the box on page three.
Read more
Cheap loans scheme: what you need to know
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