3 ways farmers CAN'T use the Department’s new cheap loan fund
The new Agri Cashflow Support Loan Scheme will make €150 million available to farmers at low-cost interest rates of 2.95%.
This scheme will enable farmers to improve the management of their cashflow and reduce the cost of their short-term borrowings.
Restricted Loan Purposes
The purposes for which the loans should not be used for include:
1. Finance of undertakings in difficulties
Farmers who are in financial difficulty excluding short-term cashflow pressures caused by the current market conditions are restricted from the scheme.
In addition farmers that are bankrupt or being wound up or having its affairs administered by the courts are restricted.
Furthermore if a farm has in the last 5 years has entered into an arrangement with creditors, in the context of being bankrupt or wound-up or having its affairs administered by the courts it is restricted for the scheme.
2. Refinance of existing term loan debt
3. New investment
The scheme is primarily aimed to address working capital and cashflow requirements - examples of what this scheme is not designed for include the purchase of assets such as land and buildings
However, the Department says by improving the cashflow position of their business through use of this facility, many farmers will be in a better position to negotiate and restructure existing loan commitments.