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

How can we help?

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