An interest-free loan for farmers and crofters in Scotland who have not yet received a first instalment payment for the Basic Payment Scheme and Greening for the 2015 scheme year and cannot access support from their bank.
The Scottish Government has earmarked up to £20 million to support this new scheme. Those who have been declined by their bank, and who require a loan from the Scottish Government, may borrow up to £20,000 or 60% of their indicative entitlement value (whichever is the lower).
Once the applicant's initial basic payment has been authorised, the loaned amount will be deducted from it and the remainder paid in to the bank account provided. It is essential that the bank account provided in the application is the same as the one saved on the Rural Payments and Services website.
The Scottish Government loan will be free of charges. The interest rate for the loan is 11.04% (based on the state aid proxy for market rates calculation). The Scottish Government will cover this interest payment and this additional benefit represents state aid to the applicants business.
The Cash Flow Loan Scheme is provided by the Scottish Government and administered through its Rural Payments and Services section.
The Cash Flow Loan Scheme provides an interest-free loan for farmers and crofters facing hardship whilst waiting for Common Agricultural Policy (CAP) payments. It will support those who have not yet received a first instalment payment for the Basic Payment Scheme and Greening for the 2015 scheme year and cannot access support from their bank.
The scheme has been designed in consultation with Scotland's banks and industry representatives to enable more farmers and crofters to access loans, if required, whilst waiting for their payments.
Where a farmer or crofter needs a loan to ease cash flow pressures, their first port of call must be their bank but if the bank declines to offer support they will then be able to apply to the Scottish Government scheme.
Although there are no specific exclusions cited within the programme guidelines, those wishing to apply are advised to liaise with the funding provider in the first instance to discuss eligibility.
Farmers and crofters in Scotland who have not yet received a first instalment payment and cannot access support from their bank are eligible to apply.
All farmers and crofters who need a loan and have not yet contacted their bank are encouraged to do so. They should work with their usual bank contact or relationship manager.
Match funding is not a stipulated requirement of this programme.
Costs associated with eligible projects.
This scheme is now closed. Information regarding future rounds will be given once available.
Applicants must send the letter from their bank declining further support with their application form. The letter must be dated on or after 1 January 2016.
The completed form and letter can be emailed to CFLS@gov.scot or faxed to 0300 244 9194. This will help to start the process application more quickly.
Applicants must also post a signed paper copy of the form and the banks letter to:
Cash Flow Loan Scheme