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Only 10% of all applications to the €2bn COVID-19 Credit Guarantee Scheme have come from farmers, participating finance providers AIB, Bank of Ireland and Ulster Bank have told the Irish Farmers Journal.
Banks had previously forecasted that 30% of all applications to the scheme would come from farmers, and suggest the poor uptake comes as a result of reduced impact of COVID-19 on the sector.
“Farming hasn’t been badly impacted this year and prices have held up well so only a small number of farmers have made applications to the scheme,” Eoin Lowry, head of agriculture at Bank of Ireland said.
“Some may still not be fully aware of the scheme. If farmers are having concerns about their cashflow, come talk to us. The criteria to the scheme are not restrictive.”
The scheme provides an 80% guarantee on lending to small and medium enterprises (SMEs) until the end of this year. 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.
Head of agriculture with AIB Tadhg Buckley said: “I think there might be a lack of awareness around eligibility for the scheme. Farmers don’t need to be in financial difficulty to apply.
“Those thinking of making investments on their farms and want cheap finance should consider the scheme. There’s no designation for what this money is to be spent on.”
Farmers unaffected
Businesses are required to declare that their turnover or projected turnover has been reduced by 15% as a result of COVID-19.
“There has been a lack of interest from farmers. They haven’t been badly impacted so we aren’t overrun with applications from their side,” Ailish Byrne, head of agriculture at Ulster Bank, said.
“We’ve seen more applications from other sectors such as leisure. Some of their business have been closed completely whereas farming has been able to keep operating.”
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