– In the second quarter of 2024, guarantees for investment and working capital loans and interest subsidies from the resources of the Strategic Plan of the Common Agricultural Policy 20123-2027 will be launched as part of the Agricultural Guarantee Fund Plus (FGR Plus), the Ministry of Agriculture and Rural Development informed farmer.pl. As stated below, from January 2025, support will be offered for the development of services for agriculture and forestry. Details below.
We recently received an inquiry from our Reader about the financing of loan security and the role of Bank Gospodarstwa Krajowego. The farmer wrote directly to us: is BGK dependent on the budget that was signed recently? At the bank, when I tried to take out a loan, I heard that Bank Gospodarstwa Krajowego did not yet have funds for this purpose.
We decided to direct this important question from our Reader to the Ministry of Agriculture. Below we present the response of the Press Department, Department of Communication and Promotion of the Ministry of Agriculture and Rural Development.
– Currently, there is an offer of investment and working capital loans guaranteed under the Agricultural Guarantee Fund (FGR) from the funds of the Rural Development Program 2014-2020. Farmers and enterprises from the agri-food sector can apply for a loan with a guarantee from the Agricultural Guarantee Fund – the Ministry of Agriculture replied to us.
As added, the guarantee can protect up to 80%. the amount of the unpaid principal of an investment or working capital loan granted by the lending bank (bank cooperating with BGK).
Working capital loans
According to the Press Department of the Ministry of Agriculture and Rural Development, the offer also includes working capital loans, covered by a guarantee and an additional interest subsidy (of 5%) as a measure to mitigate the effects of the COVID-19 pandemic. The offer was created to improve the financial liquidity of farmers and entrepreneurs in the agri-food sector.
– Support from the FGR (investment loans) is aimed at the modernization of farms and the processing and marketing of agricultural products. The FGR guarantee is available from lending banks that have signed an agreement with Bank Gospodarstwa Krajowego. The list of these banks is available at: https://www.bgk.pl/male-i-srednie-przedsiebiorstwa/zabezpieczenie-finansowania/gwarancja-dla-sektora-rolnego/#c9489 – we were informed.
The warranty is provided free of charge.
There are to be new loan guarantees
– At the same time, we would like to inform you that in the second quarter of 2024, guarantees for investment and working capital loans and interest subsidies will be launched from the resources of the Strategic Plan of the Common Agricultural Policy 20123-2027 as part of the Agricultural Guarantee Fund Plus (FGR Plus). Support will be offered for investments in farms increasing competitiveness and developing cooperation within the value chain. However, from January 2025, support will be offered for the development of services for agriculture and forestry – the ministry informed us.
What is important, support will be directed to farmers, entrepreneurs (processors) in the agri-food sector and entrepreneurs in rural areas willing to provide services to agriculture and forestry.
As part of FGR Plus you will be able to get:
- guarantee of up to 80% of the loan capital (investment and/or working capital) outstanding;
- interest subsidy for a period of 24 months: up to 50% (environmental and climate investments or implementing a farm-to-fork strategy) or up to 100% (small farms or young farmers).
The warranty will be provided free of charge.
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