Canadian Agricultural Loans Act program
Canada
Loan guarantee for farmers
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Agriculture and Agri-Food Canada (AAFC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a loan of up to $500,000 for the purchase of land and the construction or improvement of buildings or $350,000 for all other loan purposes, including consolidation/refinancing
grant_single_labels|projects
This grant program does not specify any geographical restrictions or particular eligible areas. It is applicable throughout Canada to support the agricultural sector uniformly.
grant_single|admissibleProjectsExample
$150,000
Montreal
Marketing campaign for organic farm products
$350,000
Ottawa
Refinancing of existing debt for stable expansion
$300,000
Saskatoon
Establishment of a new farm specializing in heirloom grains
$200,000
Toronto
Development of distribution network for locally grown produce
$500,000
Vancouver
Purchase of land and construction of a greenhouse for organic vegetables
$300,000
Calgary
Renovation and expansion of dairy processing facilities
grant_single_labels|admissibility
The eligibility criteria for accessing a loan under the CALA program are related to the applicant's profile and intended use of the funds.
- The applicant must be a farmer or an agricultural co-operative.
- The loans can be used by farmers to establish, improve, and develop farms.
- Agricultural co-operatives can use the loans to process, distribute, or market the products of farming.
- Loan purposes must fall within eligible categories: land purchase, building construction or improvement, or other specified purposes, including consolidation/refinancing.
- The loan must fall within the maximum limit of $500,000 for farm operations or $3 million for agricultural co-operatives, with specific caps on loan purposes.
grant_eligibility_criteria|who_can_apply
The Canadian Agricultural Loans Act (CALA) Program seeks to support farmers and agricultural co-operatives in Canada. Eligible applicants must be involved in farm operations or agricultural cooperative activities.
- Farmers looking to establish, improve, or develop their farm operations.
- Agricultural co-operatives involved in processing, distributing, or marketing farming products.
- Co-operatives requiring the Minister's approval for loans exceeding standard limits.
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant.
- Companies involved in non-agricultural activities
- Companies not engaged in farming or agricultural co-operatives
- Companies exceeding the maximum aggregate loan limits specified
grant_eligibility_criteria|eligible_expenses
The Canadian Agricultural Loans Act (CALA) Program supports activities that enhance the growth and modernization of farm operations and agricultural co-operatives across Canada. These projects can involve purchasing land, improving infrastructure, or enhancing the operational capabilities of farms and co-operatives.
- Establishment of new farm operations or agricultural businesses.
- Improvement and development of existing farms, including building construction and enhancements.
- Acquisition of farmland to expand farm operations.
- Purchase of machinery and equipment necessary for farming activities.
- Processing, distribution, or marketing initiatives by agricultural co-operatives.
grant_eligibility_criteria|zone
Loans under the CALA Program can be used by farmers and agricultural co-operatives for specific eligible expenses aimed at establishing, improving, and developing farms, as well as processing, distributing, or marketing farm products.
- Purchase of land.
- Construction or improvement of buildings on the farm.
- Purchasing equipment, such as implements and tractors.
- Consolidation or refinancing of existing debts.
- Costs related to the processing, distribution, or marketing of farm products by agricultural co-operatives.
grant_single_labels|criteria
The Canadian Agricultural Loans Act (CALA) Program does have evaluation and selection criteria. The criteria include:
- Applicant's eligibility as a farmer or agricultural co-operative
- The proposed use of the loan and its alignment with program objectives
- The financial viability and sustainability of the project or operation
- Ability to repay the loan
- Compliance with program rules and regulations
grant_single_labels|register
- Step 1: Identify Eligible Lender
- Research and find a financial institution that offers CALA loans.
- Contact lenders such as banks, credit unions, or caisses populaires to confirm they are participating in the CALA program.
- Step 2: Prepare Loan Application
- Gather necessary documentation to support your loan request, such as business plans, financial statements, and any other relevant materials.
- Determine the specific loan amount and purpose within the outlined CALA program limits.
- Step 3: Submit Loan Application
- Contact the chosen lender to discuss your loan requirements and ensure they can issue a CALA loan for your needs.
- Submit your completed loan application form and supporting documents to the selected lender.
- Step 4: Loan Registration
- Once the loan is issued, lenders will use the CALA Online Loan Registration System to register the loan.
- Pay any applicable registration fees required by the lender.
- Step 5: Await Approval and Disbursement
- The lender reviews the application for eligibility under the CALA guidelines and submits it to the program administrators for approval.
- Upon approval, the lender will disburse the funds to your account.
grant_single_labels|otherInfo
The Canadian Agricultural Loans Act (CALA) Program provides some important administrative details and conditions.
- Lenders have 60 days from the purchase date to issue a CALA loan for purchases already made.
- Lenders can use the CALA Online Loan Registration System to register loans and submit associated registration fees.
- Lenders must adhere to the Canadian Agricultural Loans Act and Regulations, as well as the Lenders' Guidelines.
Apply to this program
Supporting Agricultural Growth Through the CALA Program
The Canadian Agricultural Loans Act (CALA) Program offers a vital financial lifeline for farmers and agricultural co-operatives, facilitating growth and innovation within the agricultural sector by providing loan guarantees. With the objective of enabling farm establishment and development, the program ensures broader access to necessary capital resources.
Understanding the Canadian Agricultural Loans Act Program
The Canadian Agricultural Loans Act (CALA) Program stands as a cornerstone for financial support aimed at farmers and agricultural co-operatives, offering enhanced access to loans that foster the development and expansion of agricultural operations across Canada. Under the CALA, the Canadian government provides a strong backing to lenders by guaranteeing the repayment of 95% of any net loss on loans that comply with the program's eligibility criteria. This assurance encourages financial institutions to extend their lending capabilities to farmers and cooperatives, which might have otherwise faced challenges in accessing needed capital.
This program is uniquely structured to cater to different needs within the agricultural industry, providing significant financial assistance with specified maximum loan thresholds. Individual farms can secure loans up to an aggregate limit of $500,000, with sub-caps of $500,000 dedicated to real estate purposes like land acquisition and building enhancements, and $350,000 allocated for other essential expenses, such as machinery or refinancing. For agricultural co-operatives seeking to amplify their operations through processing, marketing, or distributing farm products, the CALA stipulates a maximum loan ceiling of $3 million, subject to Ministry approval.
Implementation of the CALA Program is seamlessly integrated into the practices of participating lenders, including banks, credit unions, and caisses populaires, which handle the process of loan issuance and management. This program requires these financial institutions to exercise due diligence akin to that for conventional loans, while still benefitting from the added security of a government-backed loan guarantee. Additionally, lenders are mandated to finalize loan documentation and registration within 60 days of a purchase to ensure loan validity under the program guidelines.
A distinctive feature of the CALA Program is its support for sustaining the agricultural landscape by ensuring that financial resources are accessible for both small and large-scale agricultural operations. This not only aids in operational continuity but also generates broader impacts by cultivating competitive advantages in agriculture through supported technological advancements, infrastructure improvements, and market developments.
Moreover, the detailed administrative framework provided by the CALA Program underpins its operational guidelines through legislative documents such as the Canadian Agricultural Loans Act, related regulations, and comprehensive lender guidelines. These materials play a pivotal role in ensuring that both lenders and borrowers are fully informed and compliant with program requirements, thereby facilitating smooth execution and monitoring of the loan process across Canada.
Overall, the CALA Program exemplifies the government’s commitment to revitalizing the Canadian agriculture sector by empowering farmers and co-operatives with the financial tools necessary for sustainable growth and market success. This initiative remains an indispensable resource for anyone within the agricultural community looking to innovate, expand, or stabilize their operations in the evolving economic landscape of Canadian agriculture.
