Unsecured 8-10 year loans in 2019 at less than 5% for capital investment
The low-cost loan scheme in 2019 will bring previously unavailable 8-10 year unsecured investment finance to the market at competitive interest rates, said Agriculture Minister Michael Creed last week.
He said the government will bring up to €300 million of loans to the market, from which an overall agri-food package of at least €120m will be available.
“This is a long-awaited source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security.
“It will also serve smaller-scale farmers, who often do not have the leverage to negotiate for more favourable terms with their banking institution,” said Mr Creed.
“Along with the likes of Milk Flex, this scheme will form part of a comprehensive investment package for farmers.
“I am also delighted to be able to include the seafood sector in the scheme.”
He said food companies have identified long-term investment finance of up to ten years as a critical need currently unavailable in Ireland.
Unlike previous loan schemes, it can be “reviewed and adjusted according to demand”.
The scheme, administered by the SBCI and backed by a European Investment Fund counter-guarantee, is expected to be in place in early 2019 and will run for three years.
Mr Creed said there is no gap in the market now for a working capital loan scheme, the gap is for longer-term solutions. “The product we are bringing out will meet all of those challenges in terms of unsecured borrowing at less than 5% over eight to ten years for capital investment.”
