Sustainable Growth Investment Program
$600,000.00
Loan Guarantee
Description:
The Sustainable Growth Investment Program is designed for farmers who have investment projects to put forward, regardless of their production sector or which life cycle their business is in. It aims to support productive and sustainable investments.
The Sustainable Growth Investment Program has four components:
1D: Growth Support funds projects related to productions other than those targeted in the 2D component.
2D: Growth Plus Support funds projects related to beef cattle, sheep, or goat production.
3D: Agri-Environmental Enhancement of Cultivated Land funds projects that will enhance the value of cultivated land or on-farm agri-environmental projects.
4D: Young Entrepreneurs provides funding to agricultural and agri-food businesses wholly owned by persons over the age of 18 and under the age of 40.
Comments on Funding:
Component 1D: Growth Support
– The maximum financial assistance is $15,000 on a loan guarantee of up to $150,000.
Component 2D: Growth Plus Support
– The maximum financial assistance is $150,000 on a loan guarantee of up to $600,000.
Component 3D: Agri-Environmental Enhancement of Cultivated Land
– The maximum financial assistance is $10,000 on a loan guarantee of up to $100,000.
Component 4D: Young Entrepreneurs
– The maximum financial assistance is $45,000 on a loan guarantee of up to $300,000.
Component 5D: Working capital loan
– Eligible businesses can benefit from a working capital loan guarantee of up to $50,000 over a ten-year period with no return of capital for the first three years, along with a financial assistance of up to $7,500.
Continuous Intake
Eligibility:
The Sustainable Growth Investment Program has five components, each with specific eligibility requirements:
Component 1D: Growth Support – Applicants must:
1. be agricultural and agri-food businesses
2. be financing of projects related to productions other than those targeted in the 2D component.
Component 2D: Growth Plus Support – Applicants must:
1. be agricultural and agri-food businesses;
2. be financing of projects related to beef cattle, sheep, or goat production.
Component 3D: Agri-Environmental Enhancement of Cultivated Land – Applicants must:
1. be agricultural and agri-food businesses;
2. be financing of projects that will enhance the value of cultivated land or on-farm agri-environmental projects.
Component 4D: Young Entrepreneurs – Applicants must:
1. be agricultural and agri-food businesses;
2. be wholly owned by persons over the age of 18 and under the age of 40.
Component 5D: Working capital loan – Applicants must:
1. be agricultural and agri-food businesses;
2. be experiencing financial difficulties or with short-term liquidity needs, particularly as a result of rising interest rates and input costs;
3. have met these eligibility criteria:
a) A reasonable expectation of profitability and financial viability;
b) Sales not exceeding $1.5 million for the financial year preceding the request;
c) A negative cash surplus for the fiscal year preceding the request;
d) A recent negative working capital position (ratio of less than 1) at the time of the request.
Application Steps:
Applicants must contact an advisor at their service centre before starting their project in order to validate their project’s eligibility for the Sustainable Growth Investment Program and the potential savings that could result from it.
Documentation Needed:
Applicants must submit a completed financing application form, and other documents that may be required for the analysis of the financial application.
Other Things to Note:
The financial assistance granted is conditional on the granting of a loan guarantee from La Financière agricole . The maximum amount of eligible financing per business is $700,000. The assistance is paid over a period of three years.
About the author
Maurice
