The banks know the income and cashflow challenges that farmers like you may be facing as a result of current price volatility as well as the impact of Britain’s decision to exit from the EU.
That’s why banks are partnering with the Strategic Banking Corporation of Ireland (SBCI) to provide practical help and support to farmers facing cashflow challenges.
SBCI is an SME* funding company which partners with banks to provide access to lower cost funding to Irish SMEs and farmers.
What’s on offer with an SBCI Agriculture Cashflow Support Loan?
- Interest rate of 2.95% per annum, fixed for the term of the loan
- Loan terms from 1 to 6 years
- Loans available to fund working capital
- Loans are available up to a maximum of €150,000 per farm operation
- No security will be required for these loans
- An interest only repayment option may be available at the start of a loan, subject to normal lending criteria
- The loan scheme will be open until 30th September 2017 or until the loan scheme has been fully subscribed, if earlier.
A typical €30,000 two year fixed interest rate loan will have 24 monthly repayments of €1,288.61, APR (Annual Percentage Rate) 2.98%. If the APR does not vary during the term of the loan the total cost of credit on this loan i.e. total amount repayable less the amount of the loan, would be €926.64.
*SME are those who:
- Have less than 250 employees
- Have a turnover €50 million or less (or €43 million or less on their balance sheet)
- Are independent and autonomous (or, if part of a wider group of enterprises, the entire group must qualify as an SME)
- Have less than 25% of their capital held by public bodies.
Who can apply?
SBCI Agriculture Cashflow Support Loans are available to farmers who operate as a Small and Medium Enterprise (SME) and are active in the primary agricultural sector in the Republic of Ireland.
Customers experiencing financial difficulty may not be eligible to apply for this loan.
Customers will also be required to declare that they meet ONE of the following conditions:
- Are participating in an agri-environment scheme as part of a Rural Development Programme or
- Are a certified member of a Bord Bia Quality Assurance Scheme or are a certified member of a Quality Assurance Scheme run by a co-operative, processor or producer representative body or
- Are a member of a Department of Agriculture, Food and the Marine (DAFM) registered Farm Partnership or
- Have completed or are participating in the financial management elements of DAFM’s Knowledge Transfer Programme or previous programmes such as BTAP and STAP, or they have a certificate or other proof in relation to Financial Training from Teagasc or another body relating to eligible agricultural sectors.
Some agricultural sectors are excluded as follows:
- Forestry (as a sole enterprise)**
- Equine (as a sole enterprise)**
** Customers operating in the forestry or equine sectors as a part of a mixed farming enterprise, are still eligible to apply for a loan provided the loan is not used to support the forestry or equine part of their business.