Business, Enterprise and Regulatory Reform written question – answered at on 2 April 2009.
To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform for what reasons farmers are not eligible for assistance under the Enterprise Finance Guarantee Scheme.
holding answer
The eligibility criteria are based primarily on the business type and/or loan purpose rather than the profession of the borrower. There are no EFG restrictions in relation to farmers. There are, however, eligibility criteria and restrictions in relation to agriculture and horticulture which are based on the relevant EU de minimis state aid rules (1535/2007 and 1998/2006).
From
Activities related to primary agricultural and horticultural production are eligible for EFG, will be is subject to a lower de minimis aid threshold. The exception being:
When the amount of aid is fixed on the basis of the price or quantity of products put on the market.
The processing and marketing of agricultural products (beyond simply preparation for sale and packaging) is eligible for EFG, subject to the full de minimis aid threshold. Exceptions:
When the amount of the aid is fixed on the basis of the price or quantity of such products purchased from primary producers or put on the market by the undertakings concerned.
When the aid is conditional on being partly or entirely passed on to primary producers.
Ultimately, however, decisions on individual lending rest with the lender. After making the commercial decision to lend according to their own criteria, all lenders use a common web portal to administer the eligibility criteria. Lenders also assess the extent of the 'grant equivalent' de minimis state aid to the borrower arising from the guaranteed loan and this is communicated to the borrower in the state aid letter.
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