Type of Program:
The Advance Payments Program (APP) is a federal loan guarantee program which provides agricultural producers with easy access to low-interest cash advances.
Comments on Funding:
Funding is up to $1 million per program year in total advances based on the value of your eligible agricultural products, with the Government of Canada paying the interest on the first $100,000 of the applicant's advance and preferential interest rates on advance amounts over $100,000.
The cash advance is calculated based on up to 50% of the anticipated market value of the eligible agricultural products that the applicant will produce or have in storage.
The advance must be secured. The advance amount one is eligible to receive will be limited by the level of security they are able to provide.
Producers repay the loan as they sell their agricultural product, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).
When It Ends:
The applicant must:
Other Things to Note:
Agricultural products that are currently eligible for an Advance Payments Program (APP) advance include: crops, grains and oilseeds, fruits and vegetables, livestock (cattle, hogs, sheep, bison, rabbits, red deer, boar, goats, elk), certain breeding animals intended to be marketed during the production period (cattle, goats, sheep, hogs), bees intended to be marketed during the production period, fur pelts and cervid antler velvet, honey and maple syrup.
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.