Description of the Interest Rate Rise Protection Program
$500,000
Grant, Loan, Investment
Description:
The program aims to enable La Financière agricole to minimize the impact of an increase in interest rates on agricultural businesses and thus support them by granting them financial assistance in the form of a contribution to the payment of interest.
It offers two advantageous protections against rising interest rates in the event that the market interest rate exceeds an established threshold and for a fixed period, namely the Privilege Rate and the Sécuri-Taux Relève.
Comments on Funding:
Maximum period of 5 years which starts automatically:
to obtain the agricultural succession grant, or
when the FADQ notes the eligibility of a successor in the company.
After this 5-year period, the TP applies.
Applications are accepted on an ongoing basis.
Eligibility:
be at least 18 years old;
that your business is at least 50% owned by people practicing agriculture;
present profitability prospects;
comply with environmental standards established under the Environment Quality Act and the Agricultural Operations Regulations concerning phosphorus balance and operating rights.
Protection is based on the company’s outstanding balance, of which a maximum of $500,000 is protected. Other conditions must also be met depending on the legal status of your agricultural business. For more details, refer to the program (PDF).
Throughout the duration of the interest payment contribution, your company must meet the conditions that made it eligible.
Application Steps:
You benefit from this protection automatically if you have a loan guaranteed by La Financière agricole and you meet the eligibility criteria .
Security Rate Protection
You benefit from this protection when La Financière agricole notes your eligibility and you meet the eligibility criteria .
Find us
Contact an advisor at your service center to make an appointment.
Documentation Needed:
No specific documents are listed.
Other Things to Note:
Submit your financial data and other information.
The data transmitted for the collection of financial data are used for the processing of the various AGRI and Financing programs.
For more information on your responsibilities during the year and the deadlines for submitting all of your financial data, see the Financial Data Collection section .
About the author
Maurice
