Minister for Business, Enterprise and Innovation, Heather Humphreys, Minister for Agriculture, Food and the Marine, Michael Creed and Minister for Finance and Public Expenditure and Reform, Paschal Donohoe today launched the Future Growth Loan Scheme to allow for the roll out of €300 million in funding to eligible Irish SMEs including farmers.
Businesses will be able to apply for loan eligibility through the SBCI from 17th April. Three finance providers - AIB, Bank of Ireland and KBC - have agreed to participate in the Scheme and negotiations are ongoing with another two. The Government is urging businesses to use the coming three weeks to start preparing their proposals for long-term capital investment.
The funding allocations for the Future Growth Loan Scheme are €37m from the Department of Business, Enterprise and Innovation and €25m from the Department of Agriculture, Food and the Marine.
Of the total budget, €42 million relates to expenditure in 2018 with a further €6 million allocated in 2019 and the remaining €14 million over a third tranche. The Department of Agriculture, Food and the Marine’s share of funding ensures that at least 40% of the fund will be available to farmers and agri-food & seafood businesses.
Commenting on the scheme, Minister Humphreys said, "With Brexit on the horizon, investment in innovation and diversification has never been more important. For this reason, I would strongly encourage businesses to started putting their proposals together now so that they are ready to start the application process with the SBCI. Even if firms are unsure if they will draw down a loan, it’s a good idea to have approval in place in case it’s something they need down the line. Notwithstanding the uncertainty that comes with Brexit, it’s better to be safe than sorry."
Minister Creed added, "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. Along with products such as 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."