Compensation of interest on loans and credit lines for the financing of working capital or acquisition of biological assets
Who can apply?
Part of interest is compensated for entities that have received loans and/or credit lines from financial institutions under INVEGA‘s guarantee for the purpose of financing working capital and/or acquiring biological assets according to the list contained in the annex to the Rules and/or for payment of wages and related taxes and contributions:
- Entities operating in rural areas and engaged in the primary agricultural production;
- Agricultural cooperatives engaged in the processing and/or marketing of agricultural products.
Apply to one of the financial institutions on the list.
An entity wishing to receive partial compensation for interest paid to a financial institution has to submit, together with the guarantee-related documents:
- application for a partial compensation for interest paid to the financial institution on a loan for the financing of working capital and/or acquisition of biological assets, covered by INVEGA‘s guarantee (an annex to the Guarantee Application Form);
In order to receive partial compensation for interest paid to a financial institution, an agricultural cooperative company (a cooperative) has to submit, together with the guarantee documents:
- an application for a partial compensation for interest paid to the financial institution on a loan for the financing of working capital and/or acquisition of biological assets, covered by INVEGA‘s guarantee (an annex to the Guarantee Application Form);
- a document confirming the list of members of the agricultural cooperative.
Rules approved by Order of the Minister of Agriculture of 16 September 2015 No 3D-691 govern the provision of de minimis aid by partial compensation for interest on loans and/or credit lines for the financing of working capital and/or acquisition of biological assets with INVEGA‘s guarantee.
How much?
80% of interest paid to the financial institution is compensated for a period of maximum 24 months starting from the date of signature of the loan and/or credit line agreement.
The compensation as a percentage of the actual interest amount can be paid:
• on a quarterly basis;
• as a lumpsum on expiry of the loan and/or credit line repayment term (when the agreement term is shorter than 24 months) or on expiry of 24 months after signature of the loan and/or credit line agreement.
The annual interest rate used as a basis for the payment may not exceed 4 %.
The total amount of de minimis aid may not exceed, over any period of three fiscal years:
• per entity operating in a rural area – EUR 25,000,
• per agricultural cooperative - EUR 200,000.
Term
According to the Rules, interest paid under only one loan agreement or only one factoring agreement concluded on or after 1 July 2021 can be compensated for. This provision applies when a loan/ factoring agreement was concluded on or after 1 July 2021.
Compensation terms and conditions
Partial interest compensation for current assets and biological assets is paid to:
- Economic operators engaged in primary agricultural production for the financing of:
o Fuel and electricity for production purposes,
o fertilisers,
o plant protection means,
o propagating material (field and horticultural plant seeds, propagating material and other material intended for the propagation of plants of certain plant varieties etc.),
o cultivating medium and containers for the plants sprouting and cultivating,
o feed and/or additives thereto,
o materials for the preparation of feed,
o spare parts for agricultural machinery and/or agricultural equipment,
o biological assets,
o veterinary facilities (veterinary biocides, veterinary tools and materials used in veterinary medicine etc.). - Recognised agricultural cooperative companies (cooperatives):
o Products produced by members of the cooperative and purchased by the cooperative.
