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Purpose
The Alberta Farm Loan Program has been designed to provide the financing needed to start, develop, and grow farming operations.
Eligibility
This loan is available to Canadian citizens or landed immigrants who meet Alberta residency requirements and who are primary agriculture producers.
Loan Uses
You can use the AFLP loan to purchase equipment, land, machinery, breeding livestock, production quota, and shares in a farming company. You can make permanent improvements to land, complete repairs, and renovate or construct buildings, including livestock facilities, barns, and housing. AFLP loans can also be used to assist with financial restructuring, restoring working capital or investing in an Agribusiness Enterprise, but not for operating loans or feeder loans.
Maximum Loan Amounts
The maximum loan to an individual or any group of connected individuals or companies is $5 million. If you qualify, you can re-borrow up to the maximum limit as loans are paid down or paid out.
Repayment and Interest Rates
Our repayment options offer you a choice of various reasonable fixed and renewable rates and terms, for a maximum period of 20 years. The interest rate can be fixed over the entire life of the loan, ensuring long-term stability and the ability to manage cash flow risk. AFLP loans can be prepaid or paid out in full at any time without penalty.
Beginning Farmer Incentive
A unique feature of the AFLP is the Beginning Farmer Incentive (BFI). This incentive offers an interest rate reduction of 1.5% for the first five years of the loan and is available to any qualifying individual with a net worth of $500,000 or less at the time of application. The maximum lifetime loan amount that can receive an incentive is $500,000 per individual. The maximum includes all previous, existing, and concurrent AFSC borrowings. A couple, applying jointly, could receive the BFI on qualifying loans up to $1 million, provided both have an individual net worth of $500,000 or less at the time of application.
For more information, contact your nearest AFSC Lending Office. To find the office location closest to you, please click on this link. |
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