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What kinds of projects does the ADF
finance?
The ADF provides loans for
working capital purposes, retooling, introducing new technology,
and implementing best practices in the agricultural and fisheries
sectors. The ADF does not provide funding to purchase land
or for any expenditure on boats.
Does the ADF provide debt
consolidation loans?
NO. However, up to a
maximum of 25% of the proceeds of an investment can be used to
liquidate a business? existing debt. This is only done to
smooth out debt service payments or if required to give EGFL the
first charge over assets.
How much funding can a
farmer/agro-business receive from the ADF?
From $50,000 to $1 million in
funding is available from the ADF.
How can a farmer/agro-business
qualify for funding from the ADF?
In order to qualify for
assistance from the ADF you must:
-
be registered with the
Ministry of Agriculture and Rural Development (MARD) and issued
with a Farm Registration Identification Card;
-
be registered with the VAT
office (where applicable) and show evidence of compliance; and
-
show evidence of compliance
with the National Insurance Scheme.
What is the procedure for
applying for funding from the ADF?
Farmers/agro-business must
complete the ADF application form if they require $150,000 or less
in funding from the ADF. Application forms are available at
the offices of EGFL at Suite B1, Welches Plaza, Welches Road, St.
Michael.
A well prepared proposal must be
submitted if a farmer/agro-business is seeking more than $150,000
in funding from the ADF. The proposals should:
-
provide an overview of the
operations (i.e.) history, type of business activity, unique
features, and development plans;
-
describe the production and/or
post harvest processes and systems;
-
include an informative
marketing section which, describes product(s) and customers,
analyses competitors and the industry, and discusses pricing,
promotion and distributions issues;
-
address relevant legal and
regulatory issues such as pending litigation and Government
permits;
-
provide organizational and
management information such as, organizational structure,
shareholders identities and shareholdings, profiles of key
individuals, etc. and
-
include a financial section
which, specifies the amount and planned use of the funds
requested, and realistic financial projections (balance sheets,
income and cash flow statements) for 3 to 5 years.
Is security required to get ADF
loans?
Security is required for all
loans.
Who makes the loan/investment
decisions?
All investment decisions are
made by the Management Committee of the ADF.
How long does it take to get a
loan decision?
EGFL strives to get investment
decisions within 4 to 8 weeks after the receipt of an application.
However, the actual time taken depends on the quality of
information submitted by applicants. Agricultural projects
are sent to the Ministry of Agriculture for a technical
evaluation. This also has an impact on the time taken to
render a decision on agricultural projects.
What is the repayment period for
ADF loans?
Repayment periods are normally 7
years or less for capital projects. However, loans may be
granted for up to 10 years. These loans attract a higher
interest rate in years 8 to 10.
Are moratoria on the repayment
of ADF loans offered?
Moratoria periods, during which
no payments or only interest payments are due and payable, are
offered at the discretion of Management Committee of the ADF.
What role will EGFL play in my
business?
EGFL will function as a strategic
partner providing advisory services, access to our network of
business contacts and clients and technical assistance in some
cases. EGFL also insists that good corporate governance
practices are followed and accounting information is accurate and
kept up to date. EGFL does not get involved in the day to
day management of your business
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