In his budget speech this Tuesday, Minister for Finance Paschal Donohoe announced the launch of the Future Growth Loan Scheme for SMEs and the agriculture and food sector.

"Government will bring new legislation to implement this scheme which will provide up to €300m. This builds on the €300m invested through the Brexit Loan Scheme last year and forms an important part of the Government’s Brexit response," he said.

Cheap loans

Minister for Agriculture Michael Creed later clarified that the scheme will include the €25m announced to support cheap loans in Budget 2018, but not delivered as yet. Budget documents show that another €6m is being added to fund the scheme in 2019.

  • Amount: €31m in Exchequer funds leveraged to make up to €300m available to borrow at reduced rates.
  • Loans available to farmers and small-scale companies in the food and seafood sectors.
  • Terms of seven to 10 years, unsecured.
  • Eligible projects will "allow businesses to strategically invest in a post-Brexit environment". This is understood to cover capital investments only and exclude cashflow finance.
  • Minister Creed said earlier this month that the rate was likely to be under 5% with a minimum borrowing of €50,000 and a maximum of €500,000.

    • Watch reaction by IFA farm business chair Martin Stapleton:

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