This is a subscriber-only article
The IFA has called for additional funding to be made available under the Future Growth Loan Scheme (FGLS), as €160m has been drawn down by farmers to date.
Lenders have reported that the agri sector has used up almost all of its allocation under the scheme.
A maximum of 40% or €200m of the low-cost loan fund was ring-fenced for the agricultural sector.
The competitively-priced loans under the FGLS proved popular with farmers because it allowed for unsecured lending up to €500,000, according to the IFA national farm business chair Rose Mary McDonagh.
“The quick drawdown by farmers highlights the strong demand. The funding has fuelled significant long-term and strategic investment on farms across the country," she said.
“On the other hand, there has been very little uptake of low-cost loans under the COVID-19 Credit Guarantee Scheme.”
Cumbersome criteria
The COVID-19 Credit Guarantee Scheme (CCGS) is a €2bn fund which benefits from an 80% Government guarantee and provides low-cost loans to SMEs negatively affected by the pandemic.
McDonagh continued: “The eligibility criteria for the CCGS have proven too cumbersome and prohibitive for SMEs. Only some 2,249 loans, totalling €118m, had been drawn down by early January.”
The IFA has urged the Government to allocate additional funding to the FGLS.
SHARING OPTIONS: