FCC expands loans for young farmers and entrepreneurs
December 9, 2021 By Farm Credit Canada
Young farmers and young food business owners in Canada can now benefit from enhanced and expanded financing opportunities through Farm Credit Canada (FCC).
The expansion of three FCC loans will help young farmers and those who are getting started or growing their business in the agriculture and food industry. FCC has increased the lifetime maximum amount it will approve for the Young Farmer and Young Entrepreneur loans from $1 million to $1.5 million.
The Young Farmer Loan Program offers qualified producers, who are under 40, loans of up to $1.5 million to purchase or improve farmland and buildings. The loan includes features to support their long-term success, including lower lending rates.
The Young Entrepreneur Loan offers financing of up to $1.5 million per qualified applicant, under age 40. It can be used to start or expand a business and to purchase shares in an agriculture-related business, including those in the agri-food sector. This access to capital will allow these businesses to take advantage of new opportunities, grow the economy and create more middle-class jobs. Features include no processing fees, preferential interest rates and up to 18 months to make a purchase.
Additionally, the eligibility and the lifetime maximum approval of the starter loan have been expanded and increased. The Starter Loan is designed to support new entrants into the industry, helping them build a solid credit rating and improve their financial literacy.
Since April 2019, FCC has approved over 6,700 loans specifically tailored for young producers and entrepreneurs worth almost $2.1 billion.
For more information, visit fcc.ca.
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