Industry Development Programs: Agriculture Loans
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.
Offered by Department of Agriculture, Aquaculture and Fisheries
Amount
no fixed amount
Quick eligibility check
Who can apply
The applicant must:
- 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,
- invest, or have invested, a minimum 10% (new entrants 5%) equity into the project, 5. provide acceptable security for the proposed financing,
- have a business plan.
About the 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.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| FCC Financing Food and Beverage | Loan | No fixed amount | Open |
| EDC Direct lending | Loan, Loan Guarantee | Direct loans that typically start at $1 million, structured to match your business needs, priced in line with commercial market rates | Open |
| Aquaculture Loans and Loan Guarantees | Loan, Loan Guarantee | no fixed amount | Open |
| Fisheries Loans | Loan | no fixed amount | Open |
