£120m RAF/government deal to finance farmers is ‘a huge vote of confidence in UK agriculture’
A GOVERNMENT pledge to guarantee a large proportion of £120million of new loans and equipment finance to UK farmers is “a clear message of support for British agriculture”, says the CEO of the agricultural funding specialist entrusted with lending the money.
Rural Asset Finance was today announced as only the 13th delivery partner and lender in over 10 years to be approved for the state-owned British Business Bank’s ENABLE Guarantee Scheme, set up to help smaller businesses access fair finance by providing specialist lenders with a government-backed guarantee.
It means farm finance leaders Rural Asset Finance (RAF) can help even more farmers needing money to enhance or add value to their UK food production or diversify into alternative revenue streams. The new RAF wholesale funding deal will enable it to loan £120m of additional funds provided by NatWest Bank and BCI Capital, with the British Business Bank guaranteeing the majority of NatWest’s portion. This guarantee significantly reduces the price of the overall risk, which in turn enables RAF to offer farmers more competitive finance agreements.
“This will open up so many more opportunities for agricultural businesses to boost their income with a new source competitive funding, maximise new opportunities and future-proof their business,” said RAF CEO Matthew Smart.
“But this is about far more than the money. The fact we have been approved to join the British Business Bank’s exclusive group of approved lenders and delivery partners sends a clear message about the government’s desire to support British farming in new, innovative ways – and their faith in us as the perfect partner to help them do that.”
