Industry Development Programs: Agriculture Loans (formerly: Agriculture Direct Loans )
no fixed amount
Loan
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans to promote the development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan must first seek financing from a private lender. DAAF’s loan program may then be available to help fill the gap between the assistance required and what the client has been approved for privately. New entrants, defined as someone who has owned a farm for five years or less, may be eligible for lower interest rates and equity requirements.
Comments on Funding:
Interest rates are determined on a case by case basis. Repayment terms are matched to the cash flow of the project as supported by the business plan. Options include interest only payments or principal and interest payments.
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
