Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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202. To ask the Minister for Agriculture, Food and the Marine the details and criteria on the new Brexit €50 million towards farmers for capital investment; and if he will make a statement on the matter. [17997/19]

Michael Creed (Cork North West, Fine Gael)
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I was pleased to launch the "Future Growth Loan Scheme" recently. The initiative 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.

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.

The loans will be competitively priced at 4.5% or lower, will be for terms of 8 to 10 years and will support strategic long-term investment in a post-Brexit environment.  

There is a minimum loan amount of €100,000 for SMEs or €50,000 for primary agriculture. The maximum loan amount is €3,000,000 and loans of under €500,000 will be made on an unsecured basis. There will be €50 - €60 million in loan funding available initially for farmers, within an overall agrifood package of €120 million. Should demand exceed these levels, this can be reviewed.

The Scheme features a two-stage application process whereby initial application is made through the SBCI website. Successful applicants are issued an eligibility reference number, which can then be used in an application to one of the participating finance providers. Approval of loans is subject to the finance providers’ own credit policies and procedures. 

The Scheme will open for loan eligibility applications through the SBCI from 17th April. Further information including a FAQ document may be accessed on my Department’s website at the following .