Agricultural Loan Guarantees: Operating Credit Guarantees for Agriculture
$1,000,000.00
Loan Guarantee
Description:
MASC offers a guarantee on lines of credit made to producers by participating lenders for operating expenses. This program can be used for general farm expenditures, living expenses, current year’s principal and interest payments on existing loans, and limited capital purchases in cases of emergency.
Comments on Funding:
The terms and conditions of the program include:
1. the maximum operating loan to be guaranteed by MASC is $700,000 for individuals and single shareholder corporations, and $1,000,000 for partnerships, corporations, and co-operatives.
2. the interest rate charged by the lender cannot exceed the prime interest rate plus 2%.
Continuous Intake
Eligibility:
Applicants must:
1. be single and multiple operator farms and agricultural enterprises are eligible for the guarantee.
2. be able to demonstrate adequate cash flow and be considered potentially viable. The lender must deem the operator’s management ability as adequate.
Application Steps:
Applicants must:
1. apply to the participating lender of their choice. If a lender indicates a guarantee is required, an application is then made to MASC.
2. For details, contact MASC through their service centers.
Find a Service Centre:
https://www.masc.mb.ca/masc.nsf/contact.html
Documentation Needed:
No specific documentation has been identified.
Other Things to Note:
About the author
Maurice
