You will find at the bottom of this page the DAERA bank letter template (indication of support) for submission with applications for grant aid under Tier 2 Tranche 2 of the FBIS-Capital Scheme.
This letter, referred to as an Indication of Support Letter, is designed to encourage applicants to carefully consider the needs and circumstances of their farm business before proceeding with a project and will confirm that the applicant can access funds to complete their project.
Applicants do not actually have to borrow the funds from a bank or lending institution. However, should you decide to proceed with an application, the letter will provide reassurance to the applicant, the financial institution and DAERA that the applicant will be able to access the funds necessary to finance and complete the proposed investment, including VAT, until the applicant receives payment for the grant assistance towards eligible expenditure at the end of the project.
The bank letter template should be used by the applicant, if you bank with one of the main financial institutions. However, banks and lending institutions may choose to use an alternative letter format which will be accepted, provided equivalent information is contained within the letter.
If the financial institution that the applicant banks with wishes to provide a letter that is not in the above format, then it must include the following information as a minimum:
- Name, address of client and six digit DAERA Category 1 Farm Business ID number (to be used by DAERA to cross reference the application);
- Confirmation that the client has managed their account effectively and/or complied with the terms and conditions of the account;
- Future funding requirements of the client have been discussed in relation to purchase of items under the Farm Business Improvement Scheme – Capital;
- Confirmation that, at present, the client has access to sufficient funds, or could have access to sufficient funds, to purchase equipment (including VAT) under the Scheme – prior to a grant being paid by DAERA (should the client be successful in obtaining a Letter of Offer of funding).
- Signed by and dated by an authorised representative of the bank/lending institution.
If the applicant is provided with a letter from the financial institution with the information, as set out in points one to four above, this will suffice and it can be attached to the application for FBIS - C in the usual way.
The bank/lending institution letter does not have to be in the name of the applicant but must be in the name of a person named on the DAERA Category 1 Farm Business Identification Number.
Applicants should contact their bank/lending institution at the earliest opportunity to ensure any Indication of Support Letter that their bank/lending institution is prepared to provide, is available to be included with the application prior to the closing date of the Scheme.