Purpose
MASC offers a guarantee on lines of credit made to producers by participating lenders for operating expenses. This program can be used for general farm expenditures, living expenses, current year’s principal and interest payments on existing loans, and limited capital purchases in cases of emergency.
Qualifications
- Both single and multiple operator farms and agricultural enterprises are eligible for the guarantee.
- Operations must demonstrate adequate cash flow and be considered potentially viable. The lender must deem the operator’s management ability as adequate.
Terms and Conditions
- The maximum operating loan to be guaranteed by MASC is $700,000 for individuals and single shareholder corporations, and $1,000,000 for partnerships, corporations, and co-operatives.
- The interest rate charged by the lender cannot exceed the prime interest rate plus 2 per cent.
Apply
Potential clients apply to the participating lender of their choice. If the lender assesses that the client’s application would benefit from a guarantee, the lender then applies to MASC.
