2022/2023 ABC Funds for SMEs, Farmers, and Intermediary Loan Application Form

This article is intended to inform the general public about how to apply for an ABC Funds loan for SMEs, farmers, and business owners. This loan program is being offered by the Federal Government to help all types of businesses meet their goals. SEE HOW TO APPLY FOR THE ABC FUND LOANS BELOW

 

2022/2023 ABC Funds for SMEs, Farmers, and Intermediary Loan Application

The ABC Fund (Agri-Business Capital) is an impact fund serving smallholder farmers and agribusiness small and medium-sized enterprises (SMEs) in developing countries.

 

Categories for Funding

1. Cooperatives: farmer organizations and SMEs in underfinanced yet profitable segments of agricultural and agribusiness value chains.

 

2. Financial Instruments: for SMEs and farmer organizations

 

3. Tenor Indicative Amount Range: Working Capital Facilities Up to 24 months, typical tenor 6-12 months €200k-400k

a.  Term Loans                     3-5 years              €400k-800k

b. Sub-debt / Equity            5-7 years              €400k-800k

 

Investment Criteria for SMEs and farmer organizations

Target entities:

• producers of primary agricultural products;
• input suppliers such as manufacturers or distributors of seeds;
• companies that produce, maintain or operate storage facilities;
• service companies, traders, veterinarians, mechanization;
• aggregators and/or processors of primary agricultural products;
• logistics companies that transport and handle primarily agricultural goods;
• processors of secondary agricultural goods/ food products.

 

Social impact Criteria / How to Apply for ABC Funds for SMEs, Farmers & Intermediary

The ABC Fund offers direct funding to projects that have a high social impact by contributing to:

• Developing rural employment and supporting income-generating activities for smallholder farmers;
• Increasing productivity and commercial performance of economic actors along the food value chain.
• Special attention is given to entities that promote innovation and sustainable and resilient agriculture, and meet the highest Environmental, Social and Governance (ESG) standards.

Financial performance criteria

• At least two years of activity
• Revenue: ≥€180,000Collateral coverage: ≥50% of loan amount (including company and other types of collateral)
• EBITDA / total revenue: ≥5%

For financial intermediary

Tenor Indicative Amount Range

a. Term Loans              3-5 years              €1M-4M

b. Sub-debt / Equity      5-7 years              €200k-500k

 

 Note

• The ABC Fund’s operations pursue the highest environmental and social standards.
• Funding provided by the ABC Fund is in euros, US dollars and in local currency when possible.

 

Technical Assistance

Along with financing, the ABC Fund helps its investees address capacity challenges to develop their business through its Technical Assistance Facility (TAF). The TAF offers technical and advisory services in the fields of business development, extension services, operations, marketing, governance, financial management and other key areas that need strengthening. The aim is both to strengthen the investees’ business and to mitigate risks, including social or environmental risks.

 

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