Agriculture and Agri-Food Canada – Supply Management Processing Investment Fund

ByMaurice

Description:

The Supply Management Processing Investment Fund (SMPIF) helps processors of supply-managed commodities adapt to market changes resulting from the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The program provides non-repayable contributions to support investments in dairy, poultry, and egg processing facilities that improve productivity and/or efficiency through the purchase of new automated equipment and technology.

Comments on Funding:

Funding will take the form of non-repayable contributions. The maximum AAFC contribution to an organization will normally not exceed $5 million over the life of the program.
Eligible project costs will normally be shared between AAFC and the applicant’s organization as follows:

  1. for SMEs: AAFC (50%), the applicant (50%);
  2. for large organizations: AAFC (25%), the applicant (75%).

Eligibility:

Applicants must be:

  • for-profit organizations, including corporations and cooperatives;
  • processors of supply-managed commodities (dairy processors, poultry primary processors (chicken and turkey), poultry further processors (chicken and turkey), Hatcheries (broiler, egg-type or turkey), egg graders, egg processors);
  • operating in Canada;
  • processors buying domestic raw commodities;
  • holding an active federal or provincial licence to carry out activities with respect to food processing;
  • able to provide financial statements demonstrating ongoing revenues from processing, including a minimum of 24 months prior to the submission of an application;
  • federally or provincially registered legal entities capable of entering into legally binding agreements.

Applications Steps:

The applicant must:

Documentation Needed:

The applicant must submit:

  1. the application form, including:
    a) work plan listing all activities and detailed description of the work to be undertaken;
    b) financing plan;
    c) performance objectives;
  2. a business plan, including:
    a. diagram of the applicant’s corporate structure;
    b. organizational chart;
  3. certificate or Articles of Incorporation;
  4. 2 complete financial statements (which will cover three years of revenues), including balance sheet, income statement, and statement of cash flow;
  5. pro forma financial statements for 3 years after project completion;
  6. detailed budget with forecasted total project costs by cost category and fiscal year;
  7. copies of financing agreements related to the project financing plan;
  8. quotes, estimates and/or contracts supporting the costs of the project;
  9. federal or provincial processing licence.

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *