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Direct Loans
Agriculture in Manitoba is a growing opportunity, though rising costs of day-to-day operations have made upkeep and expansion harder accomplishments.
The MASC Direct Loans program is intended to complement a producer's income for the purposes of:
- purchasing agricultural land or buildings
- permanent improvements to land
- construction or renovation of production buildings
- construction of new on-farm homes or renovation of existing on-farm homes
- purchasing breeding livestock
- purchasing of supply-managed quota (dairy and poultry)
- debt consolidation
- Features
- Eligibility
- Details
- Contact
- Links
Program Features
Clients are able to borrow under more than one capacity, i.e. you may borrow initially as an individual producer and then subsequently as a member of a partnership or a corporation.
Under the Bridging Generations Initiative, young farmers (18 – 39 years of age) can choose the following options on most loan purposes to help save money and reduce cash flow pressures:
- receive up to ${yfr::max_lifetime} with the {yfr::name}, a {yfr::max_rebate}% rebate on the first ${yfr::max_principal} of principal of a loan, for each of the first five years of the loan. The maximum rebate available to each borrowing unit is $3,000 annually.
- receive up to ${mtc::max_lifetime} with the {mtc::name}, a {mtc::max_percent}% credit on the first ${mtc::max_loan} of principal of a loan, for each of the first five years of the loan. The annual maximum credit available to each borrowing unit is ${mtc::max_annual}. Annual training requirements are in the area of farm management such as business and financial planning, tax implications, marketing, employee management and computer usage.
- choose either a 90% Flexible Financing option, which reduces the necessary down payment; or five years of interest-only payments to assist with cash flow pressures as developing enterprises are being established.
- take advantage of the {bgmg::name}, which provides a young farmer taking over the farm with low-cost mortgage financing, and guarantees the retiring farmer an income stream. Payments from the young farmer are coordinated according to their operation's cash flow and payments are made to the retiree according to their retirement needs.
Eligibility
Eligible Applicants
Qualifying applicants can be individuals, joint farm units, partnerships, corporations, or cooperatives. Applicants must be 18 years of age or older, Manitoba residents, and Canadian citizens or lawfully admitted to Canada for permanent residence. The combined annual off-farm gross income (including spouse, partners, or shareholders) cannot exceed ${max_offfarm_income}. Net worth cannot exceed ${max_net_worth} for any new borrowing units (or average based on the number of all partners and shareholders). The farm must be potentially viable and meet security requirements, and the applicant must personally operate the farm to which the loan applies.
Details
Loan Maximum
Loans are available for a maximum of ${program_details::max_individual} for individuals and joint farm units, and up to ${program_details::max_corporation} for partnerships, corporations, and cooperatives.
Interest Rate
Reasonable interest rates can be fixed for the full life of the loan, or re-established every five years.
See MASC Lending Rates for the latest rates.
Repayment
Direct Loans can have terms up to {program_details::max_term} years. Monthly, quarterly, or semi-annual payments are available. There are no prepayment penalties.
Security
Direct Loans may be secured with real, personal, and/or other securities as required.
Contact
To apply for an MASC Direct Loan, contact your local MASC Lending Office.
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