Under the "Grape Processing Enterprises" Subcomponent and the "Grape Processing Enterprises Purchasing Grapes for the Production of Brandy Spirit" Subcomponent, loans may be obtained by individual entrepreneurs and legal entities.

Under the Annual Crop Financing Subcomponent, loans may be obtained by legal entities, individual entrepreneurs, and natural persons.

To receive co-financing, a beneficiary must satisfy the conditions established by the Program and this Component.

The Preferential Agrocredit for Current Assets Component includes:

• the Grape Processing Enterprises Subcomponent;
• the Grape Processing Enterprises Purchasing Grapes for the Production of Brandy Spirit Subcomponent;
• the Annual Crop Financing Subcomponent.
  
  

To use the Component, the potential beneficiary must be registered in the Registry of Farms and Rural Enterprises.

Geographic Coverage

The geographic coverage of the Component includes all municipalities of Georgia.

Co-Financing Terms

To use the Preferential Agrocredit for Current Assets Component, a potential beneficiary must satisfy the conditions of this Program and the financial institution's requirements for issuance of loans of this type.

The Agency shall co-finance the interest payable for servicing the loan on the basis of the co-financing agreement.

At any stage during the period of loan co-financing, the Agency may monitor loans and take appropriate action in response to violations.

Loan restructuring is permitted if, as a result of the restructuring, the aggregate amount and term of Agency co-financing do not exceed the aggregate remaining co-financing amount and term provided by the schedule as of the loan restructuring date.

A loan(s) issued under the Subcomponent may not be used to refinance another loan(s), except a loan(s) issued within the same Subcomponent during the same season.

The financial institution's fee for issuance of the loan shall not exceed:

• for loans up to GEL 50,000 - 0.5%;
• GEL 50,001 or more - 0.2%.

If the loan is prepaid, the beneficiary shall not incur any prepayment fee/penalty payable to the financial institution.

If the amount due under the repayment schedule is not paid by the date specified in the schedule, the financial institution may charge the beneficiary a penalty only on the principal amount due, not exceeding 0.1% of the overdue principal amount for each day of delay.

If the loan is refinanced by another financial institution, the applicable fee shall not exceed the rate established by the National Bank of Georgia for such cases.

The loan repayment schedule shall be determined on the basis of the agreement executed between the beneficiary and the financial institution.

Agency co-financing of the loan shall terminate:

• upon full repayment of the loan;
• if the beneficiary fails to perform the obligation(s) under the co-financing agreement;
• in the event of a breach of other conditions of the Program;
• if the financial institution obtains a writ of execution;
• after one month has elapsed from the final date for payment of loan co-financing specified in the loan schedule;
• if the financial institution issues, within the scope of co-financing under the Preferential Agrocredit for Current Assets Component, a loan for a purpose not contemplated by the Component;
• if the beneficiary uses the loan for a purpose other than its intended purpose.
  
  

If co-financing was terminated because the beneficiary failed to submit an audit report, but an audit report subsequently submitted within the effective period of loan co-financing confirms that the loan proceeds were used for their intended purpose, the Agency may reinstate co-financing.