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As the name suggests this department is for anyone involved in the Agriculture or Agri-Food industry. This department has four programs appropriate to the expansion of an new/existing farm.

Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA) (existing farms only)

The FIMCLA is a loan guarantee program which facilitates the availability of credit to producers to a maximum of $250,000 to improve farm assets, strengthen production and/or improve financial viability.

1. Who is eligible?

2. Program Description

3. Maximum Terms and Interest Rates

4. Eligible Loans

5. Ineligible Loans

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Who is eligible?

• Applicants must be individuals, partnerships, corporations or cooperative associations actively engaged in farmingand operating the farm as a business with the intent of making a profit;

• Loans may only be made for specific purposes as defined in the Act.

 

Program Description

If you are looking to finance a new tractor, barn or value-added business venture,the Farm Improvement and Marketing Cooperatives Loans Act - FIMCLA can help you . By providing government guaranteed loans through banks and other lending institutions, it gives farmers the tools they need to succeed. Use the program to upgrade assets, expand production or put your operation on a more stable financial base.

• The program assists producers up to $250,000 to access intermediate term credit in order to finance the acquisition of farm assets, improve production technology and improve credit worthiness;

• It guarantees loans for a variety of farm improvement projects;

• It offers loans for the consolidation or refinancing of debts incurred for eligible loan purposes;

The loan guarantee program is accessed through credit institutions such as the chartered banks, credit unions and caisses populaires.

Maximum Terms and Interest Rates:

• 20 years: for purchase of land or the purchase or construction of any building or structure.

• 15 years: for additional land purchase

• 10 years: all other purposes

Repayment to be made by installments that are payable at least once a year. Calculated at prime rate +1%. Fixed rate loans may also be available. Loans CANNOT exceed 80% of the market value of the property for which the loan was made.

Eligible Loans

• For the purchase of, major repair to, or major overhaul of tools, implements, apparatus and machines of any kind not usually affixed to real or immovable property.

• For the purchase of livestock, including horses and other equines, cattle, sheep, goats and other ruminants, swine, poultry, bees and fur-bearing animals and any other prescribed animal.

• For the alteration or improvement of machinery and apparatus for the generation or distribution of electricity, whether or not affixed to real or immovable property.

• For the erection or construction of fencing or works for drainage

• For the construction, repair or alteration of, or making of additions to, any building or structure on a farm.

• For the clearing, breaking, irrigating and reclaiming of land.

• For the conservation of soil, prevention of soil erosion by the planting of trees and shelter belts.

• For the purchase, movement to and installing on a farm of complete or partially complete structures and, where necessary, the completion of the installed structures.

• Where the cost is $2,000 or more, for the repair or overhaul of fencing.

• Where the cost is $2,000 or more, for the purchase and the planting of maple trees for maple syrup production and the purchase and planting of fruit trees, Christmas trees, and ginseng.

• For the construction of a road or driveway on a farm.

• For land transfer tax, survey, appraisal and legal costs relating to the purchase of additional land.

Ineligible Loans

Improvements to the family dwelling, quota purchases of all kinds, operating loans and loans for the purchase of short term feeder livestock, among other purposes, are not eligible.

For assistance applying, click here Or Contact: The Farm Improvement & Marketing Cooperative Loans Administration (FIMCLA) Agriculture & Agri-Food Canada 2200 Walkley Road, Room 201, Ottawa, Ontario K1A-OC5 Phone: 613-957-7078 Fax: 613-996-2430 Toll Free: 1-888-FIM-CL11 (Producer's Toll Free Line) Web: http://www.agr.ca/

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