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This program is no longer accepting new applicants.
BSE Recovery Loans
Bovine Spongiform Encephalopathy (BSE) has caused significant financial hardships for Manitoba livestock producers. Even now, after most disputes have subsided and the borders have reopened, Manitoba producers still suffer through the disease's financial aftershocks.
BSE Recovery Loans were introduced to finance feed, utilities, operating costs, property taxes, and related trade accounts. Loan proceeds could also be applied to credit cards.
- Eligibility
- Details
- Contact
- Links
Eligibility
Eligible Applicants
Applicants are ruminant producers and must demonstrate an agricultural related financial setback as a consequence of BSE and that viability for their operation will be enhanced with the injection of the loan proceeds. The program is available to individuals, partnerships, corporations, and cooperatives. MASC's standard net worth, off-farm income and maximum borrowing limits are waived.
Details
Loan Maximum
The program is offered in two stages:
- Part 1 offered up to ${part1_max} financed over two years (application deadline was {part1_deadline}).
- Part 2 loans offer longer term financing for participating Part 1 clients, with additional funds up to ${part2_max} (to a program total of ${parts_total}) to be amortized for 5 or 10 years (application deadline was March 31, 2008).
Interest Rate
Part 1 interest rates for the first year were set at {part1_1styear_rate}%, with an additional {young_farmer_reduction}% interest rate reduction available to young producers (those under age 40 at time of application). The interest rate for the second year was set at {part1_2ndyear_rate}% less than MASC's prevailing one-year term rate at the end of the first anniversary date, with the additional {young_farmer_reduction}% rate reduction for young producers.
The first year interest rate for Part 2 loans is set at {part2_1styear_rate}% below MASC's prevailing one-year rate. Young producers (i.e. those under 40 years of age at time of Part 1 application) receive an additional {young_farmer_reduction}% reduction in the first year. The interest rate for the balance of the term is selected by the client and set at either MASC's prevailing 5-year or 10-year rate.
Repayment
For Part 1 loans, principal and interest are due at the end of the 2-year term or the loan may be rolled into a Part 2 loan.
Part 2 loans can have either a 5-year or a 10-year term, depending upon security provided. Part 2 loan payments can also be deferred for up to one year. Deferred loans will be re-amortized over the remaining term of the loan.
New for Part 2 BSE Recovery Loans: As of February 21, 2008, a principal payment deferral for 3 years is now offered to clients with Part 2 BSE Recovery Loans that are in good standing, or that have made satisfactory credit arrangements with MASC. The loan amortization period will be extended by 3 years, and interest rates will be unchanged. An amending agreement for each loan was required by June 30, 2008.
Security
Part 1 loans required a security agreement covering personal property and/or other security as required.
Part 2 loans with five-year terms require a security agreement; 10-year term loans require real property security. Producers applying for the additional funds up to ${part2_security} require real property security.
Contact
For more information about your existing BSE Recovery Loan, contact your local MASC Lending Office.
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External Links |
