Permanent TSB (PTSB) has confirmed today (Monday, January 24) that it is to offer finance to farmers under the Brexit Impact Loan Scheme.

The €330 million Brexit Impact Loan Scheme (BILS) provides low-cost loans to eligible businesses, including farmers, that have been impacted by the UK's decision to leave the European Union.

The scheme is open to businesses in the primary agriculture and seafood sectors and the loans are for terms of up to six years.

The BILS is delivered by the Strategic Banking Corporation of Ireland (SBCI) through participating lenders.

AIB, Bank of Ireland, and five Metamo Credit Unions already offer the low-cost loans ranging from €25,000 to €1.5 million.

The money can be used for working capital; investment and certain refinancing and unsecured loans of up to €500,000 are also available through the scheme.

Anyone wishing to apply for a loan must first seek eligibility approval from the SBCI.

Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar welcomed the decision by PTSB:

Varadkar noted that companies in difficulty could avail of wage subsidies, commercial rates waivers and other direct grant funding.

Minister for Agriculture, Food and the Marine, Charlie McConalogue also said that the announcement by PTSB was positive as it would provide another lending option for farmers, fishers and food businesses.

Meanwhile, Minister for Finance Paschal Donohoe added: "The government remains committed to supporting our SME sector, including primary producers, who are facing the twin challenges of COVID-19 and Brexit.”

CEO of Permanent TSB, Eamonn Crowley, explained that the decision shows the bank's ambition to significantly grow its SME business.

Lenders participating in the scheme are separated into two cohorts in terms of the interest rates offered.

For the first, interest rates are variable, but capped at an initial maximum rate of 3.7% for loans less than €250,000 and 2.75% for loans of €250,000 and above.

For loans from the remaining lenders, a minimum discount of 1% relative to their standard rates is required for loans under the BILS.