Low-cost loans on way for farmers

A NEW State backed low-cost loan scheme for farmers, fishermen and small businesses – announced this week by the Government   has been welcomed by farm leaders.

The scheme – announced on Monday by Tánaiste, Leo Varadkar; Agriculture Minister, Charlie McConalogue and Finance Minister, Paschal Donohue – will offer unsecured loans of up to €500,000 to farmers and small businesses.

Officially called the Covid-19 Loan Scheme (CLS), loans of between €25,000 and €1.5 million over a one to six-year repayment period will be offered – unsecured up to €500,000.

Interest rates for loans of less than €250,000 will initially be capped at 3.7% and at 2.75% for loans of €250,000 and above.

In a statement issued by the three Ministers on Monday morning last they outlined that the loans can be used for: liquidity/corking capital; investment; and re-financing, where up to 30% of new loans to refinance existing short-term credit.

Connacht IFA Chair, Pat Murphy, said that following the unprecedent financial pressure farmers were facing due to the escalating costs of inputs, news of the low-coast loan scheme was most welcome.

“At least with those interest rates, the loans should be affordable, and they will give farmers – who are either looking for working capital, investment funds or a potential restructuring of existing loans – some breathing space.

For more, read this week’s Connacht Tribune.

Connacht Tribune Digital Edition App

Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.

Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.

Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite  HERE.

Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.