The inclusion of primary agriculture in the €2bn COVID-19 Credit Guarantee Scheme is a welcome development, as it will address the growing demand for cashflow arising on many farms, IFA farm business chair Rose Mary McDonagh has said.
The scheme, which opened on Monday 7 September, 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.
Protect employment
IFA president Tim Cullinan said: “The cash burn arising from COVID-19 is unsustainable and is a threat to the viability of many SMEs, including farming.
“The low-cost COVID-19 Credit Guarantee Scheme will help to address working capital needs in order to protect upstream and downstream employment, as well as the productive capacity of the agri-sector.”
Overdraft facilities and working capital lending options need to be added immediately
Businesses will be required to declare that their turnover or projected turnover has been reduced by 15% as a result of COVID-19.
The IFA has said that overdraft facilities and working capital lending options need to be added immediately and not later in the year.
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.
Read more
Applications open for €2bn credit guarantee scheme
Farmers to have access to new €2bn COVID-19 credit scheme
Average farm low-cost loan hits €122,000
The inclusion of primary agriculture in the €2bn COVID-19 Credit Guarantee Scheme is a welcome development, as it will address the growing demand for cashflow arising on many farms, IFA farm business chair Rose Mary McDonagh has said.
The scheme, which opened on Monday 7 September, 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.
Protect employment
IFA president Tim Cullinan said: “The cash burn arising from COVID-19 is unsustainable and is a threat to the viability of many SMEs, including farming.
“The low-cost COVID-19 Credit Guarantee Scheme will help to address working capital needs in order to protect upstream and downstream employment, as well as the productive capacity of the agri-sector.”
Overdraft facilities and working capital lending options need to be added immediately
Businesses will be required to declare that their turnover or projected turnover has been reduced by 15% as a result of COVID-19.
The IFA has said that overdraft facilities and working capital lending options need to be added immediately and not later in the year.
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.
Read more
Applications open for €2bn credit guarantee scheme
Farmers to have access to new €2bn COVID-19 credit scheme
Average farm low-cost loan hits €122,000
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