Posted by Jorge LeClair in 
The Agriculture Financial Services Corporation (AFSC) is a provincial crown corporation that provides Alberta small businesses, farmers and agribusinesses with funding opportunities that include general business loans, crop insurance, farm income and disaster assistance.
3 programs of interest from AFSC are:
Commercial Loan Program
The Commercial Loan Program offers up to $5 million to any qualifying Alberta business run by either Canadian Citizens or Landed Immigrants. The loan must be used for real property expenses such as signage, equipment, computers, renovations, buildings, vehicles, etc. This program has 3 advantages over many other financing programs. First, it offers a higher loan amount than other loans offered through financial institutions or government programs.
Second, borrowers can re-borrow up to the maximum limit as loans are paid down or paid out. Third, a variety of affordable and flexible payment options are available.
Specific Loan Guarantee Program (SLGP)
The SLGP program enables applicants to obtain financing from other lenders with the support of a specific loan guarantee from the AFSC. Sometimes, small businesses or agribusinesses with potential for growth find themselves in a situation where despite they can demonstrate they can repay a loan, they are unable to qualify for funding from financial institutions. The SLGP, addresses this shortcoming and helps strengthen Alberta’s economy by empowering small businesses with the support they need to successfully obtaining funding. Guarantees of up to $5 million can be provided to financial institutions on behalf of an applicant. Risk for the loan guarantee is normally shared between AFSC and the financial institution. Guarantees can also be in the form of a letter of credit, bid bonds, or performance guarantees.
Alberta Farm Loan Program (ALFP)
The ALFP provides up to $5 million in financing to Canadian citizens or landing immigrants who as primary agriculture producers wish to start or grow their farming operations. Eligible expenses include livestock, land, buildings, equipment, housing, etc. While the loan cannot be used as a operating or feeder loan, it can be used for financial restructuring, restoring working capital or investing in an agribusiness. A unique feature of the AFLP is the Beginning Farmer Incentive (BFI) which offers applicants with a net worth of $500,000 or less, an interest rate reduction of 1.5% for the first 5 years of the loan.
As with almost all lending programs a strong business plan with supporting documentation is required to apply for funding.
For questions or assistance please e-mail me at jorge@jorgeleclair.ca
