Sub-component for financing of annual crops

1. The loans will be issued within the scopes of the sub-component for financing of annual crops and Lucerne with following purposes: 

• Funding of actual expenses for sowing and planting materials;

• Funding of actual expenses for pesticides, organic and mineral fertilizers, plant protections biologics;

• Labor resources and agricultural machinery hiring for agricultural works;

• Funding of actual expenses for fuel and lubricants used for machinery of agricultural works.

2. Following individuals can apply for the sub-component:

• A natural person, who is a citizen of Georgia;

• individual entrepreneurs registered in accordance with the legislation of Georgia;

• legal entities registered in accordance with the legislation of Georgia (except for state / municipal enterprises).

3. Within the framework of the sub-component, the amount of the loan given to one beneficiary per season is determined from not less than 10,000 GEL to not more than 100,000 GEL inclusive, and in the case of grain crops, it is determined from not less than 10,000 GEL to not more than 300,000 GEL inclusive.

4. The maximum annual interest rate of the loan issued by a financial institution under the present sub-component to a  beneficiary should not exceed 18%.

5. Loan term and payment schedule are determined on the basis of an agreement of beneficiary and credit issuing financial institution.

6. The Rural Development Agency will co-finance a 12-month interest rate loan under the subcomponent in amount of 9% per annum, no more than 14 months after the loan was issued, and after the beneficiary confirms the purposeful use of the loan in accordance with paragraph 9.

7. Maximum expenses for care and cultivation of annual crops and Lucerne for one operational year calculated per 1 ha, are given on the following link.

8. The land plot, where is planned to invest the loan amount, should be in ownership, co-ownership or use of the borrower (in case of the cooperative with the agricultural status, it is allowed, to invest the loan amount to the land plots being in ownership of the cooperative members/shareholders) , according to the legislation of Georgia (in case of co-ownership,   there should be a consent of the co-owners about the use of the property during the loan period, and in case of use, its validity period should not be less than the loan period). 

9. For the loan issued within the framework of the sub-component, the beneficiary is obliged, to submit an audit report to the serving financial institution, during not later than 1 year ( the entities existed in the registry of the “accounting, reporting and audit supervision service” of the state sub-departmental institution included in the Ministry of Finance of Georgia, which have I, II,  III or IV category; B) LEPL “Levan Samkharauli National Forensics Bureau”), about targeted spending of the loan, which should not exceed to the maximum expense of maintenance for the annual crops and Medicago during one operational year under the calculation for 1 ha. 

Any purchase implemented through the debt amount (except the service) should be implemented from the entrepreneur physical/legal entity registered under the rule defined by legislation of Georgia or through import. 

10. Credit issuance within the sub-component will be allowed from February 1 of each year, but not earlier of the date of entry into force of the Decree, including October 31 of the same year, based on the relevant Decree of the Government of Georgia (where available).

Resolution of Government of Georgia