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Frequently Asked Lending Questions
Applying for a loan
How do I get a loan with FCC? Can I apply on the Internet?
To apply for a loan with FCC, complete the Loan Self-Assessment Form. A Customer Service Representative or Account Manager in your area will contact you within two working days. Or contact your local office or our call centre at 1-888-332-3301 to make an appointment with an Account Manager.
Do I have to apply at my local office?
FCC has 100 offices across the country. Please contact your local office and discuss having the option of dealing with another office where it may be more convenient or there may be some enterprise expertise applicable to your situation.
How long will my application take?
A decision regarding your application depends on the complexity of your application. The simplest applications may be processed within 24 hours.
What do I need to supply FCC to support an application?
You must supply FCC with information regarding your business venture along with your financial position (past and present). The Account Manager will be able to tell you if other information is required to assess your specific venture.
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Eligibility
Do I qualify for a loan?
Individuals, partnerships, companies and co-operatives engaged in farming or in farm related businesses on the input or output side of primary production are eligible. Applicants do not need to be farming full-time. FCC considers lifestyle farmers whose primary source of repayment is off-farm income.
I'm a 55-year-old established farmer. Can I get a loan at my age?
FCC loans are available to any Canadian citizens over the age of 18 who can show that they have the ability to carry out the farm business plan and be present during the amortization of the loan.
Can I have off-farm income and still get a loan?
Yes. The FCC Act was changed in 1993 and allows FCC to lend when there is off-farm employment, provided there is an investment in agriculture and that all other eligibility factors have been met.
You want a first mortgage at all times, right?
FCC prefers a first mortgage but it's not necessary. The key here is the security risk taken in the context of the overall risk, and factors that help reduce risk such as creditworthiness, equity base and income stability.
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Lending details
How much do you lend?
FCC will consider financing needs in any range. The amount of financing available is determined by the needs of each agricultural venture.
How much do you lend on real estate (65%, 75%)?
That depends on the security risk taken in the context of the overall risk, and factors like creditworthiness, equity base and income stability that help to reduce risk.
Do you have grants or subsidized monies?
FCC does not offer grants or subsidies.
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Rates and payments
What are FCC interest rates?
FCC has numerous financial products with various interest terms and rates for each. We evaluate individual loan applications on their own merits and customize a financing lending program accordingly. FCC rates are competitive. Our staff uses their specialized agricultural financing expertise to adapt loan products, terms and rates to the needs of each individual operation. FCC encourages all new or existing customers to talk with their local office or Account Manager about a financing program designed for them.
How much of a down payment is required?
The down payment is negotiable and depends on the individual loan application and financing needs. A FCC representative will determine the required amount during the assessment process.
Does FCC forgive payments or accept late payments on a routine basis?
No. Just like with any other financial institution, you are required to make scheduled regular payments. If, due to exceptional circumstances such as natural disasters, you foresee a situation in which you may be late in your payments for a limited time, contact your Account Manager as soon as possible to discuss the situation.
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Security
How does FCC value property for security purposes?
FCC approaches the valuation of property used for security by applying the "comparable" approach. We examine local markets for similar properties sold and use that information to value our subject properties.
What kind of security do you require?
FCC may use assets such as fixed and mobile equipment, vehicles, livestock, marketing quota and securities for personal property security. Real property security includes land and permanent buildings. The purpose and terms of each loan determine the security requirement.
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