Michael Lowry (Tipperary, Independent)
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376.To ask the Minister for Finance the actions being taken to improve access to low-cost finance for farmers, given the reported 17% reduction in SME credit to the agricultural sector since 2017; if he will provide details on any planned initiatives to ensure farmers have sufficient working capital to operate efficiently; and if he will make a statement on the matter.[35652/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Strategic Banking Corporation of Ireland (SBCI) is under the aegis of my Department and delivers loan guarantee schemes to SMEs, including primary producers, on behalf of the relevant Departments (i.e. Department of Agriculture, Food and the Marine, along with Department of Enterprise, Trade and Employment). These aim to make low-cost finance available to farmers so that they can access working capital and further invest in their business.

Schemes currently in operation and open to SMEs in the agriculture sector are the Ukraine Credit Guarantee Scheme (UCGS) and the Growth and Sustainability Loan Scheme (GSLS).

Ukraine Credit Guarantee Scheme (UCGS)

In order to support businesses impacted by the on-going conflict in Ukraine, a State-backed Ukraine Credit Guarantee Scheme was introduced in January 2023, with a lending capacity of €1.2 billion. This scheme is due to remain open for applications until the end of December 2024.

This scheme offers low-cost working capital to SMEs, primary producers and small mid-caps (businesses with fewer than 500 employees) of up to €1 million, on a six-year term, with no collateral required for loans up to €250,000.

Growth and Sustainability Loan Scheme

The Growth and Sustainability Loan Scheme was launched in September 2023, with a lending capacity of up to €500 million. This scheme is underpinned by a counter-guarantee from the European Investment Fund/European Investment Bank Group (EIF/EIBG).

The scheme provides SMEs and Small Mid-Caps, including farmers and fishers, with long-term financing to either:

• encourage the growth and resilience of their enterprise or
• invest in climate action and environmental sustainability measures designed to improve their performance.

• Loans ranging from €25,000 to €3 million
• Loan terms for terms of 7 to 10 years.
• Up to €500,000 can be made available on an unsecured basis

Beyond these schemes, the Department of Agriculture, Food and the Marine operate a wide range of measures aiming at promoting and supporting the agricultural sector.