This program is a great opportunity for your agricultural business. It offers up to $500,000 in financing for land purchases, building construction, or improvements. Additionally, you can access up to $350,000 for other purposes, including equipment purchases and refinancing. For agricultural co-operatives, the loan limit extends to $3 million with approval.

What You Get

• Government-backed loan guarantees: The federal government guarantees repayment of 95% of a net loss on eligible loans.
• Flexible financing options: Use the funds to establish, improve, or develop your farm, or for processing, distributing, or marketing farm products.
• Ease of access: Loans are issued and administered by familiar lenders like banks and credit unions, integrating seamlessly into their normal lending practices.

Why Apply?

• Security and peace of mind: The government guarantee reduces the risk for lenders, making it easier for you to secure financing.
• Significant funding: Access substantial funds to grow and innovate your business.
• Simple qualification: The program is designed to be easy to qualify for, ensuring you can focus on your business rather than complex application processes.

By being approved for this program, you can confidently invest in your business's future, knowing you have the support and backing of the government.

Type of Financing: Loan Guarantee

Repayment Terms and Interest Rates:

• The federal government guarantees repayment of 95% of a net loss on an eligible loan issued.
• Maximum aggregate loan limit for any one farm operation is $500,000.
• Loans are limited to a maximum of:
  • $500,000 for the purchase of land and the construction or improvement of buildings.
  • $350,000 for all other loan purposes, including consolidation/refinancing.

Eligible Expenses:

• Purchase of land.
• Construction or improvement of buildings.
• Purchase of equipment and machinery.
• Refinancing existing debts.

Ineligible Expenses:

• Personal expenses.
• Non-farming related activities.
• Any expenses not directly related to the establishment, improvement, or development of the farm.

Fees:

• Lenders may charge a registration fee for loans.
• No additional fees specified by the program itself.

This program offers your business a great opportunity to grow and innovate. You can borrow up to $500,000 for purchasing land, constructing new buildings, or improving existing ones. For other needs, like buying equipment or refinancing, you can borrow up to $350,000.

The federal government guarantees 95% of the loan, which means your lender is more likely to approve your loan. This guarantee provides a significant safety net for you.

You can use the loan to establish, improve, or develop your farm. If you are part of an agricultural co-operative, you can also use the loan to process, distribute, or market farm products. The maximum loan limit for co-operatives is $3 million with the Minister's approval.

This program is designed to be flexible and integrate smoothly into your lender’s normal practices, making it easier for you to access the funds you need.