The deadline for submitting applications for grants has begun this Monday, March 7, and will remain open for four months
As of this Monday, March 7, the period for submitting applications for subsidies aimed at obtaining guarantees from the State Limited Agricultural Surety Company (SAECA) by owners of agricultural holdings or service companies that guarantee loans to finance the purchase of agricultural machinery. The budget of the call, whose bases were published in the Official State Gazette (BOE) on Saturday, March 5, is 2 million euros, financed by the Ministry of Agriculture, Fisheries and Food (MAPA).
From the Ministry they point out that the aid will be granted in a direct concession regime by strict order of presentation of the applications. In addition, the same institution will subsidize the cost of the guarantee for an amount of up to 100,000 euros during the first 10 years of the guaranteed loan, with the possibility of a grace period.
Thus, the costs of the subsidized guarantee include that corresponding to the commission (1.15% of the outstanding balance of the credit during all the years of its validity) and that corresponding to the study commission (0.5% of the amount requested, which it is paid only once at the beginning of the credit).
The objective of these subsidies, regulated by Royal Decree 244/2021, of April 6, is “to promote the renewal of the agricultural machinery fleet by improving access to credit linked to the acquisition of new machinery, thus contributing to the reduction production costs, the improvement of safety conditions at work and the incorporation of the best agricultural practices from an environmental point of view».
Finally, they report that the acquired machinery must be included in the group of machines that must be registered in the Official Registers of Agricultural Machinery. This includes, among other machines: “tractors, agricultural trailers, tankers for the transport and distribution of liquids, phytosanitary treatment or fertilizer distribution equipment, towed or suspended, slurry spreaders and localized slurry distribution accessories”.
The Sociedad Anónima Estatal de Caución Agraria, SME, SAECA, was created in March 1988. The institution, supervised by the Ministry of Agriculture, Fisheries and Food, has as shareholders the State Society of Industrial Participations, SEPI and the Spanish Guarantee Fund. Agraria, FEGA, with a participation of 80% and 20% of the share capital, respectively.
And, basically, its purpose is to facilitate, through its guarantee, access to financing for the entire primary sector to be able to carry out their investments, whether they are maintenance, improvement or modernization of their farms, as well as working capital needs.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.