Charlie McConalogue (Donegal, Fianna Fail)
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263. To ask the Minister for Agriculture, Food and the Marine if a reduction to the minimum loan amount from €50,000 for primary agriculture under the future growth loan scheme will be considered in view of the fact that it will be in excess of many requirements for farmers according to a farm organisation (details supplied). [15786/19]

Michael Creed (Cork North West, Fine Gael)
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I was pleased to launch the Future Growth Loan Scheme last week.  It has been developed by my Department and the Department of Business, Enterprise and Innovation in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF).  It will be delivered through participating finance providers and make up to €300 million of investment loans available to eligible Irish businesses, including farmers and the agrifood & seafood sectors.

As I said in the announcement last week, 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.

This type of long-term unsecured finance of 8 to 10 years is not currently available on the Irish market. Although the minimum loan amount for the Scheme is €100,000, I sought and agreed a minimum of €50,000 specifically for farmers. With a term of 8 to 10 years, I am advised that for smaller investment requirements, other types of finance may be more appropriate.

The Scheme will open for loan eligibility applications through the SBCI from 17 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 all potential applicants to use the coming three weeks to start preparing their proposals for long-term capital investment. Further information including a FAQ document may be accessed on my Department’s website at: