|
Eligibility Amounts
Q. How do you qualify a Borrower for a Loan Guarantee under FIMCLA?
A. First, the borrower must meet the definition of 'Farmer' and 'Farming'. Secondly,
the purpose must be eligible under the program. Thirdly, the 'borrower' must own/lease farm land that is currently
being farmed by the borrower, in Canada.
Q. Do part-time farmers qualify?
A. Yes. FIMCLA, since 1988 covers part-time farmers. The definition, simply put is, an
individual, partnership, corporation, or cooperative association that is engaged in farming in Canada.
Q. Do beginning farmers or beginning farming operations qualify?
A. No. In order to qualify, the borrower must already have established the farming operation
and be actively engaged in farming for the purpose of making a profit.
Q. Can a loan be financed under FIMCLA to a farmer who is leasing
land?
A. Yes. A loan may be financed under FIMCLA to a farmer who owns or is leasing land.
If the loan purpose is for items that are affixed to the property being leased, the farmer must have a leasehold
interest in the property that extends at least two years beyond the repayment term of the loan.
Q. Can a loan be financed under FIMCLA to a family member who is
farming but doesn't own/lease land?
A. No. Each person who wishes to obtain a loan under the program must qualify on their
own and must meet the criteria of 'Farmer' and 'Farming'. They must own/lease land that is currently being farmed
in Canada.
Q. Can a loan be financed to two or more eligible applicants for
the purchase of one implement?
A. Yes. Each person would be equally responsible.
Q. Does the farmer need to own/lease the land to which the equipment
is affixed?
A. Yes. In a case when the farmer is leasing the land, the farmer must have a leasehold
interest in the property that extends at least two years beyond the repayment term of the loan.
Q. Does the farmer need to own/lease the land where the building
is being constructed?
A. Yes. In a case when the farmer is leasing the land, the farmer must have a leasehold
interest in the property that extends at least two years beyond the repayment term of the loan.
|
