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SBCI Agriculture Cashflow Support Loan

Eligibility Criteria

Who is eligible?

There are a number of eligibility criteria to meet to qualify for this loan scheme. You will have to confirm (by signing the letter of sanction provided to you at the time your loan is approved) that you meet the eligibility criteria to qualify for the loan. These criteria are outlined in full below.
 
The eligibility criteria are broken into two sections.
 
  1. Criteria that you only need to satisfy on the day that you are signing the letter of sanction and
  2. Criteria that you need to satisfy for the duration of the loan.
     
Criteria that you need to satisfy on the day that you are signing the Letter of Sanction for the loan:
 
SBCI Agriculture Cashflow Support Loans are available to any customer who:
 
  • Is an SME*
  • Is not an undertaking in difficulty - within the meaning of the Commission Regulation (EU) No C(2014) 651/2014 of 17 June 2014.
  • Does not have a substantial focus on one or more of the Restricted Sectors listed below.
  • Is not delinquent or in default under any agreement with AIB or another financial institution in a manner that could materially affect your ability to meet your obligations under any such agreement. For these purposes, a failure to meet such obligations which is caused by short term cash flow pressures caused by prevailing market conditions will not be deemed to have such a material effect
  • Is not bankrupt or in the process of being wound up or having its affairs administered by the courts; or has not entered into an arrangement with creditors in the last 5 years to do this 
  • Has not been convicted of an offense or subject to a ruling concerning professional conduct, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity.
*SMEs are those who:
 
  • Have less than 250 employees
  • Have a turnover €50 million or less (or €43 million or less on their balance sheet)
  • Are independent and autonomous (or, if part if a wider group of enterprises, the entire group must qualify as an SME)
  • Have less than 25% of their capital held by public bodies.

You will also be required to self-declare (by signing a declaration which will be incorporated within the letter of sanction) that you meet any one of the following conditions:

Note that you could be asked at a future date to provide evidence in the event of an audit of the scheme.
 
(i) Is applying environmental and climate friendly production methods:

  • Is participating in an agri-environment scheme as part of a Rural Development Programme (i.e. current or previous GLAS, BDGP, AEOS, REPS, Organic Farming Schemes or a locally-led EU agri-environmental scheme).
OR
 
(ii) Is implementing quality schemes or projects aiming at promoting quality and value added:

  • Is a certified member of a Bord Bia Quality Assurance Scheme; or a certified member of a Quality Assurance Scheme run by a co-operative, processor or producer representative body.
OR

(iii) Is implementing co-operation projects:

  • Is a member of a Department of Agriculture, Food and the Marine (DAFM) registered Farm Partnership.

OR

(iv) Is training in financial instruments and risk management tools

  • Has completed or is participating in the financial management elements of DAFM’s Knowledge Transfer Programme or previous programmes such as BTAP and STAP or they have a certificate or other proof in relation to financial training from Teagasc or another body relating to eligible agricultural sectors.
     
Criteria that you need to satisfy for the duration of the loan:
 
SBCI Agriculture Cashflow Support Loans are available to any customer who:
 
  • is established and operating in the Republic of Ireland
  • is active in the primary agricultural sector in the Republic of Ireland
  • is not established in a Non-Cooperative Jurisdiction i.e. any jurisdiction that does not co-operate with the European Union in relation to the application of internationally agreed tax standards
  • is not performing illegal activities according to applicable legislation in the Republic of Ireland
  • has not received loans under this loan scheme of more than €150,000 in aggregate per farm operation
  • has not received State Aid (or the gross grant equivalent) in excess of what is permitted under the De Minimis Regulation

Who is not eligibile

Loans are not available for the agricultural sectors below:
  • Farmers operating in the Aquaculture sector i.e. Fish Farming
  • Farmers operating solely in the Forestry and / or Equine sectors
    • Farmers operating in the forestry and equine sectors as part of a mixed farming enterprise, are still eligible to apply for a loan under the scheme provided the loan is not used to support the forestry/equine part of their business.
       
Loans are not available for the purpose/activities below:
  • New investments in fixed assets and future capital expenditure
  • Refinance of existing term finance e.g. term loan, lease, hire purchase
  • Purchase of land
  • Purchase of breeding stock.
     

Loans are not available for customers who have a substantial focus on one or more of the following Restricted Sectors:

Restricted Sectors
 
1.    Illegal Economic Activities
Any production, trade or other activity, which is illegal under the laws or regulations of the Republic of Ireland for such production, trade or activity. Human cloning for reproduction purposes is considered an illegal economic activity.
 
2.    Tobacco and Distilled Alcoholic Beverages
The production of and trade in tobacco and distilled alcoholic beverages and related products.
 
3.    Production of and Trade in Weapons and Ammunition
The financing of the production of and trade in weapons and ammunition of any kind.
4.    Casinos
Casinos and equivalent enterprises.
 
5.    IT Sector Restrictions
Research, development or technical applications relating to electronic data programs or solutions, which:
 
              (i) aim specifically at:
 
a.    supporting any activity included in the Restricted Sectors referred to under 1 to  4 (inclusive) above;
b.    internet gambling and online casinos; or
c.    pornography
 
or which:
 
              (ii) are intended to enable to illegally:
 
a. enter into electronic data networks; or
b. download electronic data.
 
6.    Life Science Sector Restrictions
When providing support to the financing of the research, development or technical applications relating to human cloning for research or therapeutic purposes; and Genetically Modified Organisms (“GMOs”) AIB will require appropriate specific assurance on the control of legal, regulatory and ethical issues linked to such human cloning for research or therapeutic purposes and/or GMOs to consider a loan to this sector.

Use of information

It is important to be aware that as part of the application process AIB is obliged to share information about successful applicants with the SBCI. This is primarily to validate eligibility for the scheme but it may also be shared with EU Bodies and State Bodies. This will be done with regard to obligations under data protection legislation.
 
The Department of Agriculture, Food and the Marine (DAFM) and the SBCI may post information on their websites about you the customer, the SBCI scheme and also the loan. If you decide to proceed with this application you consent to the transfer and use of your information in this manner. The SBCI, EU Bodies and State Bodies may also correspond directly with you from time to time. 

Important Information

If you provide false information in relation to your eligibility for the scheme or the amount of State Aid received, AIB are obliged to share this information with the SBCI who may take further action. This may also result in the termination of your loan facility and a demand for early repayment in full.
 
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age.
 
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.