Sustainable Growth Investment Program Overview
The Sustainable Growth Investment Program supports Canadian farmers with investment projects to enhance productive and sustainable agriculture. Eligible businesses can receive up to $700,000 in financing over a three-year period, contingent on a loan guarantee from La Financière agricole du Québec.
Detailed Explanation of the Sustainable Growth Investment Program
The Sustainable Growth Investment Program, established on June 17, 2022, is designed to support Canadian farmers in making productive and sustainable investments. Whether your business is just starting or is well-established, this program aims to provide financial assistance to help you execute your investment projects regardless of the agricultural sector you operate in. Below, we'll delve into the program's specifics, covering eligibility requirements, eligible projects, the application process, and more.
### Program Objectives and Structure
The main objective of the Sustainable Growth Investment Program is to support and encourage investments that enhance productivity and sustainability within the agricultural sector. The program offers financial assistance in the form of an investment grant, which is conditional on securing a loan guarantee from La Financière agricole du Québec. The maximum amount of eligible financing per business is capped at $700,000, which will be disbursed over a period of three years.
### Eligibility Requirements
To qualify for the Sustainable Growth Investment Program, projects must fall under one of the following categories:
1. **Construction, Renovation, or Improvement of a Building**: Projects involving the construction, renovation, or enhancement of farm buildings.
2. **Purchase of Production Equipment and Non-Self-Propelled Machinery**: Acquisition of essential farming equipment and non-mobile machinery.
3. **Initial Acquisition of Perennial Plants or Breeding Stock**: Investments in new perennial plants or breeding stock to support agricultural production.
4. **Agri-Environmental Enhancement of Cultivated Land**: Projects that aim to improve the environmental sustainability of cultivated land.
5. **Water Supply and Irrigation Systems**: Development of water-related infrastructure, such as wells, reservoirs, and irrigation systems.
6. **On-Farm Agri-Environmental Projects**: Initiatives that focus on sustainable farming practices or agri-environmental enhancements.
Additionally, eligible projects must meet at least one of the following criteria:
1. Increase production volume, performance, or profitability of the business.
2. Comply with animal welfare and/or organic production standards.
3. Improve the land under cultivation.
4. Adopt agri-environmental practices.
### Non-Eligible Projects
It's important to note that some projects are not eligible for this program. These include:
1. Loan consolidation and secured loan conversion.
2. Share purchasing and/or permanent working capital financing.
3. Quota purchasing.
4. Purchase of land, residential homes, existing buildings, or any transactions deemed as partial or whole farm purchases.
5. Purchase of assets primarily used for non-agricultural purposes.
6. Administrative improvements.
7. Purchase of self-propelled machinery.
8. Leasing contracts (lease-purchase).
9. Asset replacement due to negligence or regular annual maintenance.
10. Purchase of business assets from entities with common ownership.
11. Assets resulting from business mergers, demergers, or divisions.
12. Current operating expenses, including administrative fees like FADQ fees.
13. Sales taxes (GST and QST).
14. Investments made outside Québec.
15. Permanent short-term needs.
### Program Components
The Sustainable Growth Investment Program is divided into five components, each targeting specific types of projects and offering distinct financial assistance options:
**Component 1D: Growth Support**
- Target: All agricultural and agri-food businesses.
- Purpose: Financing projects related to productions other than those targeted in Components 2D.
- Financial Assistance: Up to $15,000 on a loan guarantee of up to $150,000.
**Component 2D: Growth Plus Support**
- Target: All agricultural and agri-food businesses.
- Purpose: Financing projects related to beef cattle, sheep, or goat production.
- Financial Assistance: Up to $150,000 on a loan guarantee of up to $600,000.
**Component 3D: Agri-Environmental Enhancement of Cultivated Land**
- Target: All agricultural and agri-food businesses.
- Purpose: Financing projects that enhance the value of cultivated land or focus on agri-environmental projects.
- Financial Assistance: Up to $10,000 on a loan guarantee of up to $100,000.
**Component 4D: Young Entrepreneurs**
- Target: Agricultural and agri-food businesses owned by individuals aged 18 to 40.
- Note: One of the owners must have qualified under the Financial Support Program for Aspiring Farmers within the last five years.
- Financial Assistance: Up to $45,000 on a loan guarantee of up to $300,000.
**Component 5D: Working Capital Loan**
- Target: All agricultural and agri-food businesses facing financial difficulties or short-term liquidity needs due to rising interest rates and input costs.
- Financial Assistance: Up to $30,000 based on a loan guarantee of up to $200,000, determined by sales revenue.
- Specific Criteria: Negative cash surplus in the preceding fiscal year, recent negative working capital position, reasonable profitability prospects, and participation in applicable insurance and income protection programs.
- Exclusions: Businesses in the recovery process with the FADQ or another lender, as well as forestry companies, are not eligible.
### Application Process
To apply for the Sustainable Growth Investment Program, follow these steps:
1. **Contact an Advisor**: Before starting your project, consult with an advisor at your local service centre to validate your project's eligibility and understand potential savings.
2. **Complete Application Forms**: Fill out the necessary applications and forms. Depending on the project, additional documentation may be required.
Forms and supporting documents can be found on the La Financière agricole du Québec’s official website or by contacting their office.
### Program Timeline and Limits
The program runs until March 31, 2025, or until the allocated funds are depleted, whichever comes first. Business owners are encouraged to apply early to secure funding.
### Benefits of the Program
Participating in the Sustainable Growth Investment Program presents multiple benefits:
1. **Financial Support**: Access significant funding to develop and grow agricultural projects.
2. **Risk Mitigation**: Benefit from financial backing that reduces risks associated with large investments.
3. **Sustainability Focused**: Play a part in promoting sustainable agricultural practices.
4. **Youth Development**: Assist young entrepreneurs in establishing and expanding their agricultural businesses.
5. **Agri-Environmental Enhancement**: Contribute to environmental improvements within the agricultural sector.
### Conclusion
The Sustainable Growth Investment Program by La Financière agricole du Québec is an essential opportunity for agricultural businesses looking to enhance productivity and embrace sustainable practices. By breaking down financial barriers and offering substantial support, the program plays a pivotal role in fostering a resilient and innovative agricultural sector in Canada. Don’t miss out on this valuable resource to boost your farm’s growth and sustainability.
