Industry Development Programs: Agriculture Loan Guarantees
no fixed amount
Loan Guarantee
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides loan guarantees to promote development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan guarantee must first seek financing from a private lender.
Comments on Funding:
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.
Continuous Intake
Eligibility:
The applicant must:
1. be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less), 2. have first seeked financing from a private lender, 3. use the financing for: a) purchasing an existing farm,
b) starting a new farm,
c) purchasing shares in a farming operation,
d) purchasing land for farming,
e) developing land for farming,
f) working capital requirements,
4. invest, or have invested, a minimum 10% (new entrants 5%) equity into the project, 5. provide acceptable security for the proposed financing,
6. have a business plan.
Application Steps:
No specific steps have been identified.
Documentation Needed:
Applicants must submit:
1. a completed application form,
2. a business plan which includes:
a) a description of business and project,
b) financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
c) a description of management plan, d) a marketing plan, e) productions details.
Other Things to Note:
No other details available.
About the author
Maurice
