Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA)
This federal government program allows you to grow, diversify and expand your farming business. It is designed to finance farm improvements and fund the processing, distribution and marketing of farm products.
How can this help my business?
Individual farmers can receive up to 80% financing to a maximum of $250,000 for financing new or used assets
A farmer-owned co-operative can apply for up to $3 million
Eligible assets include land, buildings, construction, machinery, livestock, consolidation/refinancing, and crop storage condominiums
Maximum interest rate on variable rate loans is Prime+1%, fixed rate loans is Residential Mortgage Rate+1%
Loan terms are up to 10 years (15 years for land) and flexible payments available (monthly, quarterly, semi-annually, annually)
What else do I need to know?
Eligibility requirements include:
You must be performing a farming activity on a full or part time basis
This loan is not for start up operations
Loan amount can not exceed 80% of the cost of the assets (Trade-ins can be used for the 20% down payment)
There is a one-time, up-front government registration fee of 0.85% of the loan amount
There is an RBC administration fee of the lesser of 0.25% of the FIMCLA loan amount or $250. (0.1% for farmer-owned marketing co-operatives if loan exceeds $250,000)
