Canadian Agriculture Loans Act
Cost effective, flexible term financing for farm assets including machinery, equipment, buildings or land.
Product benefits
- Replenishing cash flow - loan proceeds replace the funds used to finance assets purchased up to 60 days ago
- Spread out the repayment of lump sum registration fee over the term of the loan
- Helping with cash crunches by not paying the principal payments for 11 months
- Longer term allows for lower monthly payments and allows borrower to match payments with revenue stream
Product eligibility
- You are a farmer engaged or intending to be engaged in farming in Canada
- Your gross or projected annual revenue is $10 million or less
- Your business is located in Canada
Program overview
Loans are guaranteed by the Government of Canada
Loans are to be used for:
- Establishing, maintaining or improving the farm enterprise
- Processing, distribution, or marketing of the products of farming by a cooperative association
Assets of a farming operation financed with a CALA loan must be used in that farming enterprise
How much financing is available?
Up to 90% of asset being financed to a maximum of $500,0001
Loan amortization
Up to 5 years and amortized:
- 15 years for Land
- 10 years for all other Agri-business needs
Fees
- 0.85% of loan paid to the Government of Canada5
- Bank adminstation4
Helpful resources
How can we help?
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1
Subject to credit approval.
2
What is provided here is a summary of the features of the CALA Loan Program. For full details speak to a Scotiabank Small Business Advisor.
4
Conditions apply. Please contact us for details.
5
Fees can be added to loan. Please contact us for details.