Agriculture Loan Guarantees
Agriculture, Aquaculture and Fisheries
Overview
The Agricultural Development Board can provide loan guarantees to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantees are typically for up to a maximum of 80% of line of credit, and usually for a period of up to 3 years.
Eligibility
The business plan must show reasonable chances of viability and must demonstrate that a demand exists for the product(s);
The applicant must have acceptable agricultural knowledge and business skills, and an acceptable credit history;
The project must fit with the province’s sector strategies (in terms of impact on agricultural land, jobs, export sales, markets, etc.);
Acceptable security must be provided for the proposed financing; and
The applicant must show an acceptable amount of equity in the business.
Description
This program provides a guarantee, to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantee is typically for up to a maximum of 80% of line of credit, and usually for a period of up to 3 years.
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.
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