SBCI Agriculture Cashflow Support Loan

Supporting the cashflow needs of Irish Farmers.

Features & Benefits

In association with the Strategic Banking Corporation of Ireland (SBCI), the Department of Agriculture, Food and Marine and the European Investment Fund, Bank of Ireland is supporting farmers’ cashflow requirements by participating in a new SBCI cashflow support loan. This is now available to SME agri customers in the Republic of Ireland.

The Scheme aims to support Irish farmers experiencing short-term financial pressure due to price and income volatility and will help them to get access to loans at a lower cost and over longer terms. This will allow customers more time to plan and budget for future working capital requirements such as feed, fertiliser, seed and veterinary costs.

Key Features

  • Apply for a loan amount up to a maximum of €150,000 per farm operation (No minimum loan amount applicable)
  • Avail of a minimum loan term of 1 year up to a maximum of 6 years
  • Loans are unsecured
  • Optional interest only repayments provided at the start of the loans
  • Loans will be provided at a fixed interest rate of 2.95%, exclusively for loans under this Scheme1
Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.

The following example represents a standard fixed-rate loan repayment under the new scheme and should be used for indicative purposes only. Eligibility criteria, terms and conditions apply. For further information, speak to your Bank of Ireland Business Adviser or Business Manager.

An Agriculture Cashflow Support Loan of €30,000 @ 2.95% over a 3-year term will require 36- monthly repayments of €871.68. The Total Cost of Credit is €1,380.48.

The Scheme launched on 3rd February 2017 and due to a very large volume of applications being received for inclusion within the Scheme, on 1st March 17 the Bank announced that from that date, due to the significant demand it could only accept applications on a provisional basis, – i.e. strictly contingent on availability within the Scheme subsequently emerging. The Bank is continuing to process applications for inclusion within the Scheme, to determine the total amount approved and committed to drawdown. If residual funding availability is confirmed within the Scheme, the provisional basis applications received to date will be processed on a “first come first served” basis, subject always to funding availability within the Scheme.

Full details available at http://sbci.gov.ie.

Purpose of new SBCI Agriculture Cashflow Support Loan

The new SBCI Agriculture Cashflow Support Loan provides eligible farmers with discounted funding to meet future working capital requirements (e.g. feed, fertiliser, trading stock, tax and other costs.)

Can be used for

  • Working capital to fund day-to-day farms operations for 2017 including feed, fertiliser, trading stock, wages, taxes and more
  • Refinance of short term credit facilities, such as supplier trade credit, merchant credit and overdrafts
  • Refinance of business capital investment where capital expenditure or assets were purchased from cash flow prior to Dec 31st 2016

Cannot be used for

  • Refinance of undertakings in financial difficulties
  • Refinance of existing term debt (e.g. Terms loans/Leases/Hire Purchase etc.)
  • New Investment

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1 Note: Interest rates may rise if it becomes unlawful for the SBCI to make payments which may otherwise be payable to the Bank under the agreement between the SBCI and the Bank in relation to these loans.

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