The Canadian Government recently announced new measures to support producers and agribusinesses by increasing Farm Credit Canada’s (FCC) lending capacity and extending repayment terms for Advance Payment Program (APP) loans.
FCC’s lending capacity will be increased by $5 billion. FCC has stated it will work with other financing providers to ensure access to funds is achieved in these difficult times. If your operation is facing financial pressure, we encourage you to reach out to your existing financing provider to ensure you have the proper plan in place.
Also announced was a Stay of Default for all eligible farms who have APP loans due on or before April 30, extending repayment terms, giving them six additional months to repay.
The new deadlines for outstanding APP loans are:
September 30, 2020
2018 advances for grain, oilseeds, pulse, cattle, and bison
October 31, 2020
2019 advances for flowers and potted plants
Producers with interest free loans outstanding will have the opportunity to apply for an additional $100,000 interest free portion for 2020-2021, if their total advances are under the $1 million cap.
Participating Administrators in Alberta for Stay of Default:
- Alberta Sugar Beet Growers
- Alberta Wheat Commission
- Canadian Canola Growers Association
- Western Cash Advance Program
Check with your current APP administrator for updated lending rates as the recent drops in the Prime Rate will have decreased the cost of borrowing.
If you have any questions about the increase to FCC’s credit limit or the changes to the Advance Payment Program, please contact Zach Keith by completing the contact form below.
For a complete list of our COVID-19 resources for individuals and businesses, please visit availcpa.com/resources
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