Business New Brunswick

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New Entrant Financing Program

PURPOSE/GOAL:

To provide a financial program under the Agricultural Development Board (ADB) to assist new entrants who will enter the Agricultural Sector.

Eligibility:

To be eligible, the applicant will have successfully completed an undergraduate degree program and will have worked on a farm for a minimum of two years after graduating from secondary school. In lieu of this requirement, the applicant will have graduated with a Diploma in Agriculture and have worked on a farm after graduation from secondary school, for a minimum of five years.

Activities:

The successful applicant will be eligible for a New Entrant Loan to a maximum of $500,000 to create/acquire a new farm (land and buildings). The loan amount may be as high as the appraised value. The term of the loan will be 8 years repaid as follows:

1. Years one to four - Interest only, at the Provincial Lending Rate in effect at time of loan approval.

2. Years five to seven - 5% principal payment plus interest payment at the Provincial Lending Rate.

3. Year eight - interest at the Provincial Lending Rate and remaining principal.

Those applications which result in the purchase of an existing farm unit shall be eligible for financial assistance under the New Entrant Program at the lesser of 80% of the appraised value or the purchase price to a maximum of $400,000.

Applications and Contact:

Regional Agriculture, Fisheries and Aquaculture Offices
Or
Agricultural Development Board
Department of Business New Brunswick
PO Box 6000
Fredericton , NB E3B 5H1
1 (506) 453-8232