Sub-component of the component for basic means of the preferential agro-credit – for financing of small cattle farms

1. Within the sub-component loans are issued for financing of cattle farm. 

2. The following entities may use the sub-component:

a) Georgian citizen physical entity– in case of the loans from 20,000 GEL up to 75,000 GEL; 

b)Individual entrepreneur registered under the legislation of Georgia; 

c) Legal entity registered according to the legislation of Georgia (except the state/municipal enterprises). 

3. Total volume of the loan(s) issued for per beneficiary within the sub-component should not be less than 20,000 (twenty thousand) GEL and not more than 250,000 (two hundred and fifty thousand) GEL. 

4. For the potential beneficiary to use with the sub-component, he/she must meet the prerequisites for granting such type of loans by the financial institution and the requirements of the present project. In addition, the land plot, on which is planned implementation of the purpose, should be in ownership, co-ownership or use of the borrower in accordance with the legislation of Georgia (in the case of co-ownership, there must be the consent of the co-owner (co-owners) with regard to use of the property during the period of co-financing of the loan, and in the case of use, its validity period should not be the period of co-financing of the loan less than the deadline).  

5. The beneficiary is obliged: 

a) To arrange the infrastructure necessary for 25 milker cows, also to satisfy criteria of the farm (link of the criteria); 

b) To ensure building/reconstruction/equipping of the farm and satisfy of the relevant minimum requirements; 

c) To ensure consideration of animals health and well-being, production hygiene and food safety requirements in accordance with Georgian legislation;

d) To ensure constant availability of water/electricity;

e) In case of operating farm, to ensure that the operating farm at the time of submission the statement be registered as the business operator and the cattle owned by them be registered in National Animal Identification and Traceability System of Georgia (NAITS). 

6. Loan amount for per soul is not more than 10,000  GEL;

7. The beneficiary is obliged, (except the refinanced loan) to ensure  total spending of the tranche during 6 (six) months after receive of each tranche (any purchase implemented with the loan amount (except the service) should be implemented by the entrepreneur physical/legal entity registered under the rule defined by the legislation of Georgia or through import) for confirmation of performance of the loan purpose to submit the audit report in the financial institution during the next 7 (seven) months after issuing of the loan or its tranche. If in the mentioned term the beneficiary does not submit the audit report, agency will cancel co-financing to the beneficiary and after expiration of 12 (twelve) months co-financing by the agency will be terminated. 

8. For the loans issued within the component, the agency is authorized to review the issue to change the terms defined under 7th clause. 

9. Within the sub-component loan(s) are issued for the following purpose:

a) For financing of the equipment/devices necessary for arrangement of buildings (stalls) and farm; 

b) Construction/reconstruction of the farm; 

b) Equipping of the farm/technique (the link); 

c) Milk production/primary processing (chilling only); 

d) Food storage building-facilities; 

i)  Provision of water for cattle stalls. 

j) Financing of arrangement of the internal territory’s infrastructure necessary for functioning the cattle farm; 

10. Interest rate of the credit is defined according to its volume. Interest rate of the credit may be fixed or floating: 

a) In case of fixed interest rate, the following annual interest rates should be defined by the financial institution: 

b) In case of floating (variable) interest rate, the following annual rates should be defined by the financial institution:

11. Participation of the agency:  

The agency will co-finance the interest rate of not more than 48 months in parallel with the amount paid by the borrower (if any), in the amount of 11% of the basic amount of the loan, not more than 50 months after the loan or its first tranche is issued. 

12. The target area of the component is all municipalities of Georgia, except the self-governing cities.