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Learn about TBC’s offers to agricultural entrepreneurs
2024-08-30 12:59:03

TBC has been involved in almost all national projects for many years, which allows the bank’s specialists to be more flexible in providing the best credit options and optimal conditions for all TBC borrowers.
The “Preferential Agricultural Credit” project is implemented by the Rural Development Directorate of the Ministry of Environment and Agriculture and aims to support the production process of primary agricultural production, processing and storage and sales with cheap and affordable funds. Preferential agricultural credit is issued for the creation of new agricultural enterprises and the expansion of existing enterprises, the planting of new perennial crops, agricultural mechanization and timber production, and breeders of high-yield cattle farms.
Shota Kongladze, head of TBC Bank’s country project management team, stressed that what makes TBC different from other banks in terms of agricultural management is the way it was initiated.
“Only TBC provides start-up agricultural loans to clients in almost all agribusiness sectors. TBC’s individual approach is unique in the Georgian banking sector – the bank does not use existing income, therefore, on this basis, borrowers are not limited to the amount of funds required for the financing project. For those who want to start new agribusiness activities and need financial support, TBC provides loans with a long grace period, taking into account future income from the financing project. Similar start-up approaches include multiple directions: perennial crop cultivation, processing direction, layout of high-yield breeding farms. Even agritourism is financed through the start-up approach. TBC started the start-up in the fall of 2016. Since then, more than GEL 120 million have been invested.”
The Commercial General Program allows commercial entities to use funds to finance the fixed and working capital of enterprises and to obtain loan interest co-financing from the state. Here, the purpose of the loan includes the creation of new enterprises, expansion of existing enterprises, as well as capital expenditures required for production and refinancing of loans issued within the framework of the program.
The national program of the credit guarantee mechanism is implemented by the “Made in Georgia” agency, just like the business general program. The program aims to increase access to business loans for beneficiaries who do not have sufficient collateral. In the credit guarantee program, each loan granted by a commercial bank/microfinance organization is provided with a credit guarantee in an amount not exceeding 80% of the loan principal. At least 80% of the loan should be used for capital expenditures and not more than 20% for the purchase of working capital. The program is available to beneficiaries with annual sales of not more than 20,000,000. The maximum term of the credit guarantee is 10 years.
In addition to these projects, TBC is also actively working with various donor organizations. TBC and the European Bank for Reconstruction and Development (EBRD) provide clients with commercial loans for fixed asset financing, and if the project is successfully validated, the borrower will receive 10% to 15% of the total loan amount. The goal of the project is to promote the introduction of EU trade standards in various sectors such as agriculture and livestock.
Active cooperation with various donors is another distinctive feature of TBC. For example, the bank participates in the DFC (US International Development Finance Corporation) guarantee program, as well as EIB (European Investment Bank) financial support for start-ups and SIDA (Swedish International Development Cooperation Agency) guarantee programs, supporting green finance, regional enterprises and women in business. TBC has a special responsibility for the development of these areas.
The advantage of cooperation between private and legal entities and TBC is the opportunity to participate simultaneously in a number of these programs covering a wide range of activities – the Bank offers the borrower (depending on the purpose of the loan) the opportunity to jointly participate in several programs that are suitable. The project to be financed is a unique offer in terms of loan conditions and benefits.
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