A loan specifically designed for Farmers. Cultivate provides short to medium term loan opportunities built specifically around the growing needs of our farming members. Enniscorthy Credit Union is happy to lend to the SME/Agri sector. We have specialist staff who have been trained in lending to this sector and all of the regulations which apply.
Background to SME Regulation
The Central Bank (Supervision and Enforcement) Act 2013 (Section 48)(Lending to Small and Medium Sized Enterprises) regulations 2015 (the “SME Regulations”) came into effect on 1 July 2016 for all lenders that provide SME/Agri credit, and from 1 January 2017 for credit unions.
The objective of the regulations is to strengthen and support business interests by enhancing the existing protections in place for SMEs. The regulations introduced specific requirements for regulated lenders, including:
- Giving SME borrowers greater transparency around the application process
- Providing SME borrowers with reasons in writing for declining credit, the reasons which will be specific to their application.
- Providing greater protections for guarantors.
- Contacting SME borrowers who have been in arrears for 15 working days.
- Warning SME borrowers if they are in danger of being classified as ‘not co-operating’.
- Expanding the grounds for appeal and setting up an internal appeals panel.
For more information please call to the Credit Union for a copy of our Information Booklet for Lending to Micro and Small Enterprises (SME Lending), download it here or email loans@enniscorthycu.ie.