More Accessible Grants for Moldovan Agricultural Producers and Processors July 7, 2005
CNFA announces that it has signed a new cooperation agreement with the Rural Finance Corporation (RFC) as part of the USAID-funded Agribusiness Development Project (ADP). As a result of this partnership, RFC regional officers will assist Moldovan rural entrepreneurs in completing application forms to request grant funds under ADP’s Competitive Enterprise Grants Program. This will ensure greater access to grant assistance for producers and agribusinesses involved in high-value agriculture (such as production and processing of vegetables, fruits, table grapes, berries, etc.).
CNFA has trained 21 RFC regional officers on grant policies and procedures that will provide free of charge assistance in completing grant applications. Those producers and agribusinesses that fulfill the eligibility criteria for this program may seek assistance from any of the RFC regional officers in Edinet, Balti, Soroca, Orhei, Calarasi, Causeni, Cahul and Chisinau.
In addition to RFC, the Agricultural Producer Associations (APA) and the National Rural Development Agency ACSA assist potential grant beneficiaries in requesting grant assistance observing the CNFA Enterprise Grants Program’s procedures and policy. They have successfully processed over 65 applications in the past several months, of which 11 projects totaling $437,000 worth of grant assistance have been awarded.
The Agribusiness Development Project funded by the United States Government through USAID and implemented by CNFA aims to improve the efficiency of Moldova’s high-value agricultural sector. ADP’s main objective is to improve the export competitiveness of this sector by strengthening all points along the value chain: from production, to processing, handling and exporting.
Producers are eligible for grants up to $50,000 (with no minimum limit) on condition that they share at least 50% of the investment costs. For example, if a producer requests $50,000 for a greenhouse project, he will need to invest at least the same amount of money into this activity. The partner’s contribution may also be secured through bank loans.
Agribusinesses can apply for grants of $10,000 to $50,000 or of $50,000 to $100,000 (depending on the company’s volume of activities), observing the same cost matching requirement as producers. Larger grants of $100,000 to $400,000 are also available to enterprises that are able to invest at least 60% of the project cost.
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