It’s important for any resource provider that  deals with funding programs and information for rural businesses to acknowledge the unique challenges and opportunities faced by and provided by the sector.

Some of the credit challenges specific to the small and medium size businesses that are typical in rural Canada include:

• Potential lenders do not have the same understanding of the business details as borrowers.
• Lack of established relationship with banks
• Small business size
• Principal/agency problems
• Lack of management skills of business owner and poor business plan
• Lack of a track record and collateral
• Conservative nature of financial markets in general.

Rural businesses do provide unique opportunities as well:

• Costs of operation can be lower due to lower due to lower occupancy costs and a pool or rural labour.
• Businesses can often function in synergy with other local businesses.
• An opportunity exists for lenders to develop personal relationships and evaluations of  borrowers.
• Successful businesses in rural areas can have a multiplicative effect on other local businesses.

The Canadian Government has many funding programs available to farmers and other rural business owners that recognize these unique challenges and opportunites.

In order to capitalize on the opportunities for Canadian agricultural grants farmers are encouraged to contact The Canadian Grants Business Center, an organization that provides information on various funding programs for small businesses, including farms.