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The €2bn COVID-19 Credit Guarantee Scheme to provide Irish businesses, including those in the farming sector, with access to low-cost loans opened on Monday 7 September.
The scheme will provide an 80% guarantee on lending to small and medium enterprises (SMEs) until the end of this year.
Farmers and other SMEs will be able to go directly to the banks in the scheme and the guarantee can be used for a wide range of lending products between €10,000 and €1m that have a maximum term of six years.
Reduced turnover
Minister for Agriculture Charlie Mc Conalogue said: “Farmers, fishers and food businesses can avail of the scheme to ensure that the disruptions caused by the pandemic do not undermine the ongoing viability of food production.
“It will ensure the continuity of economic activity in rural and coastal areas and ensure security of food supply at home and for export.”
The provision of unsecured loans of up to €250,000 has significantly expanded the scope
Businesses will be required to declare that their turnover or projected turnover has been reduced by 15% as a result of COVID-19.
Participating finance providers will be AIB, Bank of Ireland and Ulster Bank. Businesses need not previously have been clients of a participating provider to apply for lending.
SBCI CEO Nick Ashmore said: “The expansion to include primary producers and the provision of unsecured loans of up to €250,000 has significantly expanded the scope and impact of the scheme.”
Second tranche
The scheme is situated between the shorter-term COVID Working Capital Scheme and the long-term Future Growth Loan Scheme (FGLS) being offered by the Government.
Applications for the next tranche of the FGLS opened in July, with an additional €500m announced at the start of June, but legislative changes had delayed the start date.
Farmers will have access to 40% of the second tranche, with loans of between €25,000 and €3m available for terms of between seven to 10 years.
SHARING OPTIONS: