The Farm Debt Consolidator
no fixed amount
Loan
Description:
The Farm Debt Consolidator is used as a cleanup tool for short-term payables, stagnant operating debt, medium term loans, and restructuring of long-term debt with other lenders. Nova Scotia farmers can normally implement it when cash flow demand outstrips supply.
Comments on Funding:
The applicant will pay interest and other fees, if applicable.
The Consolidator will be real estate based, supplemented by all other typical forms of security such as a General Security Agreement (GSA) and corporate and personal guarantees. On occasion the Board NSFLB may wish to go beyond the farm for additional personal security.
Loan to Value not to exceed 70%.
Eligibility:
Applicants must be:
1. existing producers,
2. new prospective farmers.
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. a completed application form;
2. a full Business Plan;
3. Cheque for Service Fee – Required for New Clients to the Board or Repeat Applications;
4. a summary of their education, training, work and farm experience, and a description of your current farm program and marketing program, if New Clients to Nova Scotia Farm Loan Board;
5. Void Cheque and EFT form to authorize payments by Pre-Authorized Debit (page 5 of Loan Application);
6. completed Group Life Insurance Application Form for at least one applicant (contact your local office for application forms), or written confirmation of Life Insurance through a private policy assigned to the Nova Scotia Farm Loan Board.
7. Quota Information Declaration Form if applicable.
8. Specific information for each business type, as following:
a) Sole Proprietor: Last 3 years Income Tax Return & Statement of Net Worth and/or 3 years’ financial statements.
b) Joint Tenants (Spouses): Last 3 years Income Tax Return & Statement of Net Worth for each individual and/or 3 years’ financial statements.
c) Partnership: Last 3 years Income Tax Return & Statement of Net Worth for each individual and/or 3 years’ financial statements. AND Signed Copy of a Legal Partnership Agreement.
d) Incorporated Business: i) Last 3 years, accountant prepared business financial statements, ii) Copy of Company’s Borrowing Resolution Certified by the Registry of Joint Stocks,
iii) Copy of Signed Shareholders Agreement,
iv) Completed Company Shareholder Information Summary Form.
9. copy of Outstanding loan balance in addition to details relating to any applicable penalties;
10. A copy of your Notice of Assessment issued by the Canada Revenue Agency;
11. Copy of two pieces of current government photo ID (birth certificate, driver’s license, etc.).
Applications are processed on the basis of a security appraisal, an assessment of the farming program and a review of the completed application form
Applications are processed on the basis of a security appraisal, an assessment of the farming program and a review of the completed application form.
Other Things to Note:
May 2024: This program is no longer available.
About the author
Maurice
