Are Loans available for Canadian Famers?
Being in the Canadian Agriculture Market, there may be programs available to you to increase your business. By law, the Government provides loan guarantee programs to farmers and agricultural co-operatives. Farmers and Agricultural providers can use the farm funding to build, enhance, and develop, their business, while agricultural co-operatives may also access loans to process distribute or market the products of farming.
Loan Objectives
The program allows the Government of Canada to support the renewal of the agricultural sector and enables co-operatives to better seize market opportunities.
Funding availability
The 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.
The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister’s approval.
Program Delivery
Lenders must take the same care and prudence in issuing this guaranteed loan as would be taken in conducting ordinary business. The Program has been designed to enable lenders to incorporate it into their normal lending practice, while providing the government guarantee on eligible loans to farmers and agricultural co-operatives.
If a purchase has already been made, a lender has 60 days from the purchase date to issue a the guaranteed loan.
Contact Information
The Canadian Grants Business Center can tell you what guaranteed loan program you are eligible to apply for in your area. Please contact us at: