Cattle Loan Program

By mmuise
Description:

The Cattle Loan Program helps Island farmers by financially supporting the breeding and raising of animals destined for the Atlantic Beef Products plant.


Comments on Funding:

Funding is up to a maximum of $100,000 per individual applicant and is available under two options:
1. loan available for feeder animals with financing at prime rate plus 1%, repayable over an 18 month term, or;
2. loan available to purchase breeding stock with financing at prime rate plus 1%, repayable over a five year term.
The loan application fee equals to ½% of the amount of the proposed loan.

Deadline: Continuous Intake
Eligibility:

The applicant must:

  • be a farmer in good standing with the PEI Cattle Producers and the Department of Agriculture and Fisheries,
  • ensure animal traceability,
  • use best management practices related to animal welfare,
  • be registered in the AgriStability Program,
  • have a satisfactory Personal Property Security Act check,
  • be a resident of Prince Edward Island and be 18 years of age or older,
  • use the loan to purchase cattle, and not ongoing business costs,
  • market animals to Atlantic Beef Products Inc. (If cattle are shipped to another plant or not sold locally, Finance PEI reserves the right to demand loan),
  • sell offspring not being finished from breeding stock financed by this program to local farmers (evidence is required),
  • state the purchase cost on invoices and only use third party transactions (costs to be verified based on industry norms),
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  • have proceeds from sale of animals in the name of the Applicant and Finance PEI jointly, and
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  • use all funds available through the Advance Payment Program before accessing funding through the Cattle Loan Program.
Application Steps:

The applicant:

1. must submit the Application for Financial Assistance form, a business plan prepared by a qualified Chartered Accountant and the loan application fee to Finance PEI,

2. will be contacted to discuss the business proposal and the next steps required to determine eligibility.

Documentation Needed:

The applicant must submit:
1. the Application for Financial Assistance form, 2. a business plan prepared by a qualified Chartered Accountant including 3 years of cash flow projections and 3 years of historical financial statements, if applicable,
3. the current “Statement of Personal Financial Affairs Form” for all shareholders and any proposed third party guarantors. 4. other documents, if the case.

Other Things to Note:

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About the author
mmuise