Type of Program:
The Canadian Agricultural Loans Act Program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use these loans to establish, improve, and develop farms, while agricultural co-operatives may also access loans to process, distribute, or market the products of farming.
Comments on Funding:
Loans are limited to a maximum of:
The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister's approval.
When It Ends:
The applicant must:
A farm operation must meet the definition of farmer and farming as defined in the Canadian Agricultural Loans Act.
Farmer may be one of the following that is or intends to be engaged in farming in Canada:
The applicant must present the business proposal directly to a chartered bank, credit union, caisse populaire, Alberta Treasury Branches or any other organization designated by the Minister. The lender will go through its loan application process and determine the financing best suited for your needs, which may include a loan under the CALA program.
Lenders register loans and submit the associated registration fee using the Canadian Agricultural Loans Act Online Loan Registration System or by e-mail.
- 1Beginning or start up farmers may need to provide the lender with a business plan and an income tax form showing no farm income and/or expense for at least one year in the last six years.
- 2Agricultural co-operatives may need to provide a current income tax return showing farm income and/or expense from 50% + 1 of its members or a notarized attestation as to its membership.
Other Things to Note:
Under this program, the federal government guarantees, to the lender, repayment of 95% of a net loss on an eligible loan issued.
- 1Maximum interest rates:
- 2The maximum repayment terms are:
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.