AMC - European Investment Bank funding (EIB) discounted loans – limited funds available
Date of Article
Feb 12 2016

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12 February 2016, The Agricultural Mortgage Corporation (AMC) have today announced another small tranche of European Investment Bank (EIB) funds which are available to farmers, estates and landowners with qualifying capital improvement projects. The tranche is limited to £5m and if the proposal is in line with the criteria the loan will qualify for a 0.80% discount from our standard pricing for a 10 year period.

The deadline for applications for this tranche of funds is the end of April 2016 so we suggest that anyone considering a qualifying capital improvement project contacts their Carter Jonas AMC agent sooner rather than later in order to secure the funding.

Carter Jonas has specialist AMC Agents within the firm who can help to secure loans for variety of purposes and are available to discuss any opportunities in confidence.

Summary

To promote business sustainability and growth within the SME sector across Europe, the EIB is again providing funding to certain lending organisations at low commercial rates in return for onward lending to Small to Medium Sized Enterprise (SME) customers on a discounted basis.

AMC has been able to access this funding which enables them to offer discounted margins on loans for qualifying farm investment projects and have a limited amount available.

AMC can now offer a 0.80% (80 basis points) discount off their normal margins for a standard loan up to 10 years.

Criteria

A summary of the criteria is set out below:-

Discounted loans are subject to some qualifying criteria:

  • Investment/project funding on a secured loan basis
  • SME must have 250 FTE staff or less, including all subsidiaries
  • Each project must have a start and end date, and be no more than 2 years in duration
  • No additional fees, penalties or clawback payable to EIB in event of early repayment. (normal AMC fees apply)
  • AMC existing credit policy will apply

AMC will offer discounted margins subject to the following:

  • Applicable to the AMC standard loan only
  • Flexible facility loan cannot be discounted
  • Minimum (discounted) loan amount is £25,500
  • Interest only and annuity, fixed and variable rates all qualify
  • Discounted loans can be released in tranches – subject to the completion date of May 2015
  • A loan offer can be broken down to EIB eligible part and non-EIB part, detailed on Loan Offer schedule

Contact your local AMC agent below for more information.