Quota Loan

By mmuise
Description:

The Quota Loan is for buying milk quota, egg quota, broiler quota, and turkey quota. It provides Nova Scotia farmers the needed funding to grow production and keep their farm moving into the future.


Comments on Funding:

Service fee calculation:
New Loans: 0.25% of the loan balance with a minimum of $400 and a maximum of $2000
for all loans under $5 million. A fee of $3000 will apply to loans above $5 million.
Refinancing of Existing Loans: 0.125% of the loan balance to a maximum fee of $250 in
addition to early payment fees.
*For new clients, service fee must be paid upfront, before first disbursement.

Deadline: Continuous Intake
Eligibility:

Applicants must be:

  • existing producers, including:
    a) Egg producers
    b) Dairy producers
    c) Broiler producers
    d) Turkey producers
  • be farmers,
  • be agri-businesses,
  • be based in Nova Scotia.


Application Steps:

1. Applicants must complete the application form on their own, or call for a loan officer to assist or review it with them.

2. Applications are processed on the basis of a security appraisal, an assessment of the farming program and a review of the completed application form.

Documentation Needed:

Applicants must submit:
1. Full Personal / Business Tax Returns or Financial Statements for last 3 years of the loan applicant as well as shareholders and guarantors;
2. A copy of your Notice of Assessment issued by the Canada Revenue Agency;
3. Copy of two pieces of current government photo ID (birth certificate, driver’s license, etc.);
4. Signed Application for Financing form signed by all applicants and shareholders;
5. If applicable, a copy of any shareholder agreements;
6. Electronic Funds Transfer form and void cheque for pre-authorized debit;
7. Consent Agreement – optional.

If you are applying for the purchase of assets or major renovations (land, buildings, equipment,
quota, upgrades, etc.):
1. Purchase & Sale Agreement signed by all parties (if applicable) and/or
2. Quotes or invoices from supplier.
If you are applying for a new business venture/expansion:
1. Detailed business plan with financial projections (income and
expenses)
If you are applying for the purchase an existing business, or the shares of a business:
1. Company financial statements for the past 3 years
2. Confirmation from Canada Revenue Agency that there are no accounts
owing

Other Things to Note:

No other details available.

About the author
mmuise