Agriculture Loan and Loan Guarantees
grant_single|update January 24, 2025
NB, Canada
Financing to buy or develop New Brunswick farmland
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of New Brunswick
- Aquaculture and Fisheries (NB)
- Department of Agriculture
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a loan or loan guarantee to start a new farm or purchase an existing one, to purchase shares in a farming operation, or to buy or develop land for farming.
grant_single_labels|terms_and_conditions
This grant includes flexible financing modalities to support the unique financial circumstances of agricultural projects. Conditions are tailored to fit the specifics of each loan application, ensuring alignment with project cash flows.
- Interest rates are determined on a case-by-case basis to suit individual project needs.
- Repayment terms are customized according to the cash flow projections of the project, as outlined in the business plan.
- Options for repayment include interest-only or principal and interest payments.
- A loan guarantee fee of 1.5% of the guaranteed amount is due annually.
- No application fee is required for a loan or loan guarantee application.
grant_single_labels|projects
This grant program supports activities that contribute to the growth and development of the agricultural sector by providing financial assistance for various farming-related projects. It aims to bridge the financing gap between what private lenders offer and what is needed for successful agriculture ventures.
- Purchase an existing farm.
- Start a new farm.
- Purchase shares in a farming operation.
- Purchase land for farming.
- Develop land for farming.
- Working capital requirements.
grant_single|admissibleProjectsExample
$ 350,000
Purchase and expand an existing dairy farm, including new facilities and equipment
$ 320,000
Acquire and convert a conventional farm into an organic certified farm
$ 200,000
Establish a new organic vegetable farm including land acquisition and necessary equipment purchase
$ 140,000
Launch a local bee farming project focusing on honey production and research
$ 120,000
Create a hydroponic urban farm infrastructure with advanced systems
$ 170,000
Develop an agroforestry project incorporating sustainable practices and equipment investment
grant_single_labels|admissibility
Eligibility for this loan and loan guarantee program is determined by specific requirements related to the applicant's financial condition and proposed activities within the agriculture sector.
- The applicant must first seek financing from a private lender before applying for a DAAF loan or loan guarantee.
- Eligible activities for the loan or loan guarantee include purchasing an existing farm, starting a new farm, purchasing shares in a farming operation, purchasing land for farming, developing land for farming, and addressing working capital requirements.
- Refinancing or repaying existing debt is not considered an eligible activity.
- Applicants must submit a comprehensive business plan, including a project description, financial information, management plan, marketing plan, and production details.
- Acceptable security must be provided for the loan or loan guarantee.
- Applicants must demonstrate a minimum equity into the project of 10%, or 5% for new entrants (those who have owned a farm for five years or less).
grant_eligibility_criteria|who_can_apply
In Canada, individuals or entities who can apply for the Agriculture Loan and Loan Guarantees program through the Department of Agriculture, Aquaculture and Fisheries (DAAF) include:- New entrants to farming (those who have owned a farm for five years or less) - Established farmers looking to purchase an existing farm, start a new farm, purchase shares in a farming operation, buy land for farming, develop land for farming, or need working capital.Applicants must seek initial financing from private lenders, after which they may apply for DAAF's program to meet any financing gaps. They must also meet certain equity and security requirements, and submit a comprehensive business plan.
grant_eligibility_criteria|who_cannot_apply
There are some types of companies that are not eligible for this grant:
- Non-profit organizations
- Individuals
grant_eligibility_criteria|eligible_expenses
The eligible expenses for the Agriculture Loan and Loan Guarantees program focus on costs associated with acquiring and developing farming operations.
- Purchase an existing farm.
- Start a new farm.
- Purchase shares in a farming operation.
- Purchase land for farming.
- Develop land for farming.
- Working capital requirements.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The evaluation and selection criteria include:
- Economic impact of the project
- Innovation and originality of the project
- Feasibility and risk assessment
- Capacity and experience of the project team
- Alignment with grant objectives and priorities
grant_single_labels|apply
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grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Interest rates for loans are determined on a case-by-case basis, allowing for potentially lower rates depending on the project's risk assessment.
- Repayment terms are flexible and matched to the cash flow projections in the business plan, which can include interest-only payments or both principal and interest payments.
- Younger farmers or new entrants may have advantages with lower interest rates and equity requirements, potentially making it easier for them to secure funding.
- No application fee is required, which reduces the initial financial burden on applicants.
- A loan guarantee fee of 1.5% is payable annually, which is a consideration for financial planning and budgeting of applicants.
Apply to this program
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