Ulster Bank has confirmed it has been allocated €50m of the €300m Future Growth Loan Scheme (FGLS).

The bank is setting aside 20% (€10m) for farmers or people involved in primary agriculture.

The loan scheme provides loans to farmers at competitive interest rates and is aimed at young farmers who traditionally find it harder to access credit.

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What is the Future Growth Loan Scheme?

The FGLS opened for applications on 17 April, with up to €60m available to farmers out of the €300m scheme.

A two-stage application process is in place.

Farmers must first apply to the Strategic Banking Corporation of Ireland (SBCI) and go through an eligibility check before being supplied with a reference number they can use with one of the approved lenders.

Business plan

Farmers will also need to complete a business plan for amounts over €250,000 as part of the eligibility process.

It will then be up to the bank as to whether a farmer meets the bank’s terms and conditions for a loan.

According to the SBCI, loans for primary agriculture must fulfil a certain purpose. These include:

  • The improvement of the overall performance and sustainability of the agricultural holding.
  • The improvement of the natural environment, hygiene conditions or animal welfare standards, provided the investment goes beyond EU standards.
  • The creation and improvement of infrastructure related to the development, adaptation and modernisation of agriculture.
  • The achievement of agri-environmental climate objectives.
  • The restoration of production potential damaged by natural disasters, adverse climatic events, animal diseases, plant pests and the prevention of damages caused by those events.

    • The SBCI notes that the purchase of cattle does not qualify for loans.

    Loan details

    Loan amounts of between €50,000 and €3m are available per applicant.

    Maximum interest rates of 4.5% for loans up to €249,000 and 3.5% for loans greater than €250,000 apply.

    Loans are available on terms ranging from eight to 10 years and can be unsecured on amounts up to €500,000.