Compensation of interest on loans and credit lines for the financing of working capital or acquisition of biological assets

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.