NFU wins access to business loan scheme for farmers

Farmers have been given a credit lifeline after the NFU successfully lobbied for the sector to be included in the Enterprise Finance Guarantee Scheme.

News the Department for Business Enterprise and Regulatory Reform has confirmed that farming will now be included in the scheme has been shared with all the major agriculture lenders. The NFU says the scheme will give farmers and growers access to secure loans to safeguard businesses and convert existing overdrafts during the economic downturn where access to credit has been tight.

NFU Director of Policy Martin Haworth said: "We have lobbied vigorously for our members to be given access the £1.3 billion scheme to aid their business conditions during this tough economic time.

"Farmers can contact their banks as normal - we have spoken with all the major agricultural lenders and they are all taking part."

Notes

1. The Enterprise Finance Guarantee Scheme supports bank lending, of three months to 10 year maturity, to UK businesses with a turnover of up to £25 million who are currently not easily able to access the finance they need. It will enable them to secure loans of between £1,000 and £1 million through the Government guarantee and is available up to 31 March 2010.

2. The guarantee can be used to support new loans, to refinance existing loans where the loan is at risk due to deteriorating quality of security, or to convert an existing overdraft into a loan to release capacity to meet working capital requirements and is available through most banks.

3. Due to state aid rules farm businesses can apply for help up to around €56,000 depending on the terms and conditions of the loan.

4. 5.5 per cent of farmers who responded to the NFU December Credit Crunch Survey highlighted credit as a critical risk to their business.

NFU Press Release

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This Spring 2009 News artile was created on 8th April 2009

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