Thanks to a federal program targeting farmers and their marketing cooperatives, the Laurentian Bank could grant you a loan guaranteed by the federal government. With the borrowed funds, you could purchase land, livestock, equipment, or even build or renovate buildings, among other things.

Eligible applicants

• Farmers
• Individual farmers
• Farm partnerships
• Farm corporations or cooperative associations
• Farmer-owned cooperative associations

Eligible purposes

• Equipment Loans;
• Building/Construction Loans;
• Additional Land Loans;
• Livestock Loans;
• Consolidation/Refinancing Loans;
• Cooperative Loans;
• and many other purposes

Ineligible purposes

• Improvements to the family dwelling
• Quota purchases of all kinds
• Short-term operating loans
• Purchase of short-term feeder livestock

Eligible amount

You may have one or more guaranteed loans at any one time, but the total cannot exceed the maximum of $250,000. Loans can be made up to 80% of the market value of the property for which the loan was made.

Repayment terms

The maximum term for repayment is 15 years for additional land, and 10 years when the loan is for any other purpose. There must be at least one instalment applied to principal paid each year.

Interest rate

Interest to be paid on a floating rate is a maximum of the lender's prime rate plus 1%.

Interest to be paid on a fixed term rate uses a formula based on a maximum of the lender's residential mortgage rate plus 1%.

Costs

The farmer is required to pay a fee to have the loan registered and guaranteed under the Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA). This fee is 0.85% the amount of the loan. The lender may also charge an administration fee of 0.25% of the amount of the loan, up to a maximum of $250. These costs may be added to the financed amount.

Once the purchase has been made, you have 60 days to receive funding from a lender for a FIMCLA loan.