Scotiabank’s Small Business Unit has launched a $100-million loan fund to assist small farmers to plant cash crops for local consumption. The funds, which are being made available at a concessionary rate of 9.95%, is part of the Ministry of Agriculture and Fisheries Financial Access for Responsible Members (FARM) Programme.
In a release issued recently, ScotiaBank said “This Scotia FARM Fund reinforces the Bank’s ongoing thrust to stimulate growth in the agricultural and productive sectors. Under this initiative, the bank is providing short-term, non-revolving loans to financially viable farming projects with the goal of stimulating increased farming activities, reducing the use of foreign exchange on imports of products that can be produced locally and generating increased employment.”
The fund will be available from April 29 to December 31, 2010 to eligible farmers who are registered with the Rural Agricultural Development Authority (RADA), and approved by the Ministry of Agriculture and Fisheries FARM Programme. Loans will range between $500,000 and $2 million, and will be utilised for short-term crop financing, including purchasing of fertilizer,insecticide, seeds, and securing labour directly related to the crop production.
In the first phase of the project, the bank will be providing loans for the planting of onions, irish potatoes and hot peppers. The maximum loan term for the financing of onion and potato crops is six months, and the maximum term for hot peppers is nine months. A maximum of 10 per cent of the project cost (up to $200,000) can also be used for the purchase of capital equipment specific to the project/crop planting. Loans will be disbursed against invoices for material and labour and directly to the suppliers for material.
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