Purpose
MASC can provide a guarantee to lenders for producers interested in diversifying their current operations and/or adding value to agricultural commodities. The program assists in overcoming problems such as equity and security shortfalls, limited production experience, and new products.
Qualifications
- The program is available to individuals, partnerships, corporations, and co-operatives. The majority of the applicants must be residents of Manitoba and Canadian citizens (or have lawful permanent residence status).
- The project must demonstrate, based on the business plan, satisfactory cash flow and long-term profitability to service the debt.
Terms and Conditions
- The maximum principal available is not capped.
- Fixed or floating interest rates can be selected but rates cannot exceed maximum levels established by MASC. For floating rates, the maximum is the individual lender’s prime rate plus 2 per cent. For fixed rates, the maximum is the individual lender’s residential first mortgage rate for the term plus 2 per cent.
- MASC’s guaranteed share is up to 33.33 per cent of the entire value of the loan.
Apply
Potential clients apply to the lender of their choice. If the lender assesses that the client’s application would benefit from a guarantee, the lender then applies to MASC.
