MASC recognizes that availability of credit under reasonable terms and conditions from traditional lenders is vital to rural Manitobans. Through partnerships with private sector lenders, MASC is able to offer a variety of guarantee programming.

Diversification Loan Guarantees

What is a Diversification Loan Guarantee?

• 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.

What are the 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 profitablility to service the debt.

What are the 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 per cent. For fixed rates, the maximum is the individual lender’s residential first mortgage rate for the term plus per cent.

How can I apply?

• Potential clients apply to the participating lender of their choice. If a lender indicates a guarantee is required, an application is then made to MASC.

Manitoba Livestock Associations Loan Guarantees

What is a Manitoba Livestock Associations Loan Guarantee?

• This program provides producers who are members of livestock associations with the benefit of lower costs associated with financing and higher volume transactions of feeders and fed cattle. MASC guarantees funds borrowed by the associations from participating lenders to purchase feeder cattle and breeder cattle to enhance their livestock operations.

What are the Qualifications?

• All participants must be approved by MASC, the lender, and the association.
• Feeder association members can feed their livestock on a custom basis. Breeder association members must care for their livestock within their own operation.

What are the Terms and Conditions?

• The maximum loan per association member is $. The maximum lending limit for an association is $.
• A livestock association must consist of a minimum of members, and must retain legal ownership of the livestock, which must be identified with the association’s brand. The association sells the livestock on behalf of its members and deducts loan repayments and costs from the sale proceeds before forwarding the net proceeds to its members.
• Each member of a feeder association must place per cent of their authorized loan limit into the association’s assurance fund. Each member of a breeder association must place per cent of their authorized loan limit into the association’s assurance fund.
• Financing for members of a breeder association can be established on up to a -year repayment term, with the first year being an interest-only period.

How can I apply?

• The association arranges with an approved lender for financial services and for administration of an MASC guaranteed loan.