Farm Credit Canada (FCC) COVID-19 support program – Payment Deferrals and Credit Line Program (2022)

Description:

To ensure producers, agribusinesses and food processors can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this challenging period, effective immediately, FCC has put in place:

  • a deferral of principal and interest payments up to six months for existing loans; or

  • a deferral of principal payments up to 12 months;

  • access to an additional credit line up to $500,000, secured by general security agreements or universal movable hypothec (Québec only).

Comments on Funding:

Funding will take the form of an additional credit line up to $500,000.

Loan terms and conditions:

  • term: 24-months;
  • costs: an interest rate of Prime +1% and no fees;
  • secured by general security agreements or universal movable hypothec (Québec only).

Eligibility:

  • Applicants must be Canadian producers, agribusinesses and food processors.
    Businesses applying for FCC lending products are subject to normal lending due diligence, which considers business viability, credit history, and management integrity and experience.

Applications Steps:

Normal lending due diligence will be taken on all applications.

Documentation Needed:

Applicants must:

  • generate a net worth statement,
  • collect past three years of tax returns or accountant-prepared financial statements,
  •  gather recent pay stubs or written employer verification for off-farm income (if applicable),
  • bring government-issued photo ID (drivers license, passport),
  • collect shareholder agreements (if any),
  • assemble copies of existing operating loan agreements
  • build a business and marketing plan,
  • prepare and maintain a cash flow budget.

Other Things to Note:

This program is still present on their home page, so I considered it ongoing, though it is not mentioned in the Financing tab. There are the same details as last year. Check with FCC if the program is still running.

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