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.