Government loan guarantee scheme for participating banks.
The overall fund will total €200m and will be released in tranches to provide longer-term loans to COVID-19 impacted businesses. 40% of the scheme funding is ring-fenced for applicants operating in primary agriculture.
Maximum loan size will be €3m (first €500k can be unsecured). Minimum loan size will be €100k (or €50k for borrowers operating in primary agriculture).
Loan terms range from 8 to 10 years.
Initial maximum loan interest rate of 4.5% for loans < €250k and 3.5% for loans >= €250k. Variable interest rates are subject to change.
Optional interest-only repayments available in certain circumstances.
Loans can be used for long term investment in tangible or intangible assets on agricultural holdings linked to primary agricultural production. Note that these are certain activities which are excluded.
Applicants must be viable micro, small and medium sized enterprises (SMEs) and Small Mid-Cap enterprises which comply with certain eligibility criteria.
Excluded categories (non-exhaustive): An SME or Small Mid-Cap that:
- is in financial difficulty;
- is bankrupt or being wound up or having its affairs administered by courts;
- in the last 5 years has entered in to an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts; or
- is convicted of an offence concerning professional misconduct by judgement, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity where such illegal activity is detrimental to the European Union’s financial interests.
- Funding cannot be applied within EIF Restricted Sectors.
- A number of further excluded activities which the loan cannot be used to support is available at link.
The Scheme is operated on behalf of the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine by the Strategic Banking Corporation of Ireland (SBCI) and is available from the participating banks (AIB, Bank of Ireland, Ulster Bank and KBC).
This Scheme is open and will be available for a three year period or until the scheme has been fully subscribed.
On 27 April SBCI has confirmed that each of AIB, Bank of Ireland and Ulster Bank are at their
limits for the Scheme, so no further funding from them at the moment.
KBC still has some
capacity, but it’s not
offering funding in the
agricultural sector, so
who aren’t in the
category can now apply
for funding from KBC
under that scheme