Cash Flow Loan Scheme

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.