Written answers

Thursday, 20 May 2021

Department of Agriculture, Food and the Marine

Agriculture Schemes

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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374. To ask the Minister for Agriculture, Food and the Marine the level of funding that is to be provided to the Strategic Banking Corporation of Ireland from his Department in 2021; if these funds relate to the extension of the agriculture cash flow support loan scheme or a different scheme; the total amount of new credit that will be available to borrowers to be drawn down; and if he will make a statement on the matter. [27241/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Some €9.1 million is due to be paid to the Strategic Banking Corporation of Ireland (SBCI) from my Department’s budget this year. €3.4 million relates to the Future Growth Loan Scheme, which is nearing capacity. €5.7 million relates to the new Brexit Impact Loan Scheme (BILS), which will have a capacity of up to €330 million in new lending. The Department's funding ensures that up to 40% of the Scheme will be available to the agri-food sector.

The Brexit Impact Loan Scheme will put in place important support for businesses to ensure that they have access to finance during this pandemic and to help deal with the challenges brought about by Brexit. Development of the Scheme is progressing with supporting legislation currently proceeding as a priority through the Houses of the Oireachtas. On 6th May, the SBCI issued an Open Call for lenders to deliver the BILS and it is hoped that it can be launched shortly.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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375. To ask the Minister for Agriculture, Food and the Marine the amount of funding provided by his Department to the Strategic Banking Corporation of Ireland for the purposes of loans to the agricultural sector and the resulting level of borrowings available to the sector by year and by scheme in tabular form; and if he will make a statement on the matter. [27242/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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My Department of Agriculture, Food and the Marine, in partnership with the Department of Enterprise, Trade and Employment and the Department of Finance, have worked with the Strategic Banking Corporation of Ireland (SBCI) to deliver a number of loan schemes which support SMEs in Ireland, including the agri-food sector, as follows:

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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376. To ask the Minister for Agriculture, Food and the Marine the progress made with regard to a loan scheme under the SBCI targeted towards the agriculture sector with a value of €330 million; and if he will make a statement on the matter. [27243/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The Brexit Impact Loan Scheme (BILS), underpinned by a counter-guarantee through the European Investment Fund’s European Guarantee Fund, has been designed by the Department of Agriculture, Food and the Marine in cooperation with the Department of Enterprise, Trade and Employment and is delivered through the Strategic Banking Corporation of Ireland (SBCI). The Scheme has a capacity of up to €330 million and will be launched in parallel with the closure of the existing SBCI Working Capital Scheme (encompassing the Brexit Loan Scheme and the Covid-19 Working Capital Scheme). DAFM funding ensures that up to 40% of the Scheme will be available to the agri-food sector.

The Scheme will put in place important support for businesses to ensure that they have access to finance during this pandemic and to help deal with the challenges brought about by Brexit. The BILS offers a number of advantages over the existing arrangements on the Brexit Loan Scheme, including that farmers and fishers will now be eligible to access the new Scheme; loan terms of up to six years & variable interest rates will be available, and; loans will be available for working capital and investment purposes.

Development of the Scheme is progressing with supporting legislation currently proceeding as a priority through the Houses of the Oireachtas. On 6th May, the SBCI issued an Open Call for lenders to deliver the BILS and it is hoped that it can be launched shortly.

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