The lifetime maximum amount Young Farmer and Young Entrepreneur loans have been increased from $1 million to $1.5 million, Farm Credit Canada (FCC) says in a Dec. 7 news release.
“One of the biggest challenges young farmers and entrepreneurs tell me they face is access to capital. These specialized loans mean the next generation will be better able to become established and contribute to Canada,” Marie-Claude Bibeau, federal minister of agriculture and agri-food, says in the release.
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 release notes. 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.
The eligibility and the lifetime maximum approval of the Starter Loan has also 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, the release says.
The release notes that since April 2019, FCC has approved over 6,700 loans specifically tailored for young producers and entrepreneurs worth almost $2.1 billion.
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