Program for Farm Financing

This document was prepared with the information on the La Financière agricole du Québec's Web site.

The "Program for farm financing" of Financière agricole du Québec (FADQ) provides support to farm enterprises through loans and lines of credit for agricultural activities.

Eligibility Criteria

LOAN CRITERIA

1- ADVANTAGE PLUS RATE LOAN

• Full or part-time farmers;
• Farms and agri-food businesses in which farmers have at least a 50% interest;
• Agricultural goods and services companies;
• Individuals interested in acquiring shares in an agricultural concern.

2- PREFERRED RATE LOAN

• Companies whose main activity is agriculture in which   full-time producers hold a 60% interest.  

3- SECURE RATE DEVELOPMENT LOAN

Business development loans for full-time agricultural producers. This might include farm expansion projects, introduction of new technology, embarking on a new kind of agricultural production or meeting environmental standards.

LINE OF CREDIT CRITERIA

• Companies in which farmers hold a 60% interest;
• Goods and services companies;
• Generally used for farm operating expenses.

Summary

LOAN

1. ADVANTAGE PLUS RATE LOAN (for all agricultural investments)

• Guaranteed loan up to $2 million per company;
• Choice of interest rate:
  • fixed rate based on residential mortgage rates with a discount varying from 0.30% to 60% applicable for a term of 1, 2, 3, 4, 5 or 7 years;
  • variable rate based on the prime rate.

2. PREFERRED RATE LOAN (protection against interest rate hikes)  

The Preferred Rate is granted for the first $500,000 the company borrows. For a period of 15 years, the FADQ repays  half of all interest payments in excess of 8%.

3- SECURE RATE DEVELOPMENT LOAN (for business development)

• Granted for the first $500,000 the company borrows;
• Capped rate: for the first 5 years of the loan, agricultural producers never pay more than 8% interest because the FADQ reimburses any excess interest;
• The Preferred Rate then applies for the next 10 years, followed by the Advantage Plus Rate for the remaining term of the loan, if applicable.

LINE OF CREDIT (for daily farm operations)

• Up to $500,000;
• Prime rate plus 1%;
• Maximum line of credit term: 5 years.

For more information, consult the Web site at http://www.financiereagricole.qc.ca

Quebec Contact(s):
La Financière agricole du Québec
1400 de la Rive-Sud Boulevard
Saint-Romuald, Quebec  G6W 8K7
Telephone: 418-838-5602
Fax: 418-833-3871
Toll-free (information): 1-800-749-3646
E-mail: financiereagricole@fadq.qc.ca
Web site: http://www.fadq.qc.ca/index.php?id=1086&no;_cache=1&=&L;=1
Hours of operation: Monday to Friday, 8:30 a.m. to noon and 1:00 to 4:30 p.m.