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What is FIMCLA?
The Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA) is a Federal
Government guaranteed loans program for both farmers and their marketing cooperatives to help them with their financing
needs by increasing the availability of credit. Established in 1988, FIMCLA has helped more than 130,000 farmers
grow their businesses by guaranteeing loans through lending institutions.
Who is eligible?
- Farmers
- Individual farmers
- Farm partnerships
- Farm corporations or cooperative associations
- Farmer-owned cooperative associations
Applicants must be actively engaged in farming and operating the farm as a business with
the intent of making a profit.
What is eligible?
- Equipment Loans;
- Building/Construction Loans;
- Additional Land Loans;
- Livestock Loans;
- Consolidation/Refinancing Loans;
- Cooperative Loans;
- and many other purposes.
Ineligible Purposes
FIMCLA loans may not be made for improvements to the family dwelling, quota purchases of all kinds, short-term
operating loans and loans for the purchase of short-term feeder livestock.
How much money is available?
A farmer may have one or more guaranteed loans at any one time, but the total cannot exceed the maximum of $250,000.
A farmer-owned cooperative may have one or more guaranteed loans outstanding to a combined maximum of $3
million.
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 installment applied to principal paid each year.
Interest Rates
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 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 to
a maximum of $250.
How to apply?
The farmer applies for a loan from any lending institution authorized to make loans under the provision of FIMCLA.
- Chartered Banks
- Alberta Treasury Branches
- Credit Unions
- Caisses Populaires
- Trust Companies
- Loan Companies
- Insurance Companies
Other Information
If purchase has been made, a farmer has 60 days to receive funding from a lender for a FIMCLA
loan.
For more information about FIMCLA :
Contact your bank or lending institution;
or
Call the FIMCLA toll-free help line at 1-888-346-2511.
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