Are you a producer or agricultural co-operative in need of a financial boost to carry out your projects? The Canadian Agricultural Loans Act (CALA) Program can help you make your projects happen with loans guaranteed by the Government of Canada.
Whether you are starting out or you are an established producer or co-operative, the CALA Program makes it easier to access credit to support the growth of your business.
Favourable terms
Loans are administered by participating lenders or financial institutions and are guaranteed by the Government of Canada.
This guarantee can cover up to 95% of the net loss on an eligible loan, which helps facilitate access to credit for agricultural producers and co-operatives.
The CALA Program has a number of benefits:
- up to $500,000 for the purchase of land and the construction or improvement of buildings
- up to $350,000 for all other loan purposes
- an aggregate loan limit of $500,000 ($3 million for co-operatives)
- a lower down payment
- competitive interest rates
- flexible repayment options
These terms can reduce the time it takes to make the investments needed to grow and modernize your business.
Financing adapted to your projects
Financing is often one of the most important steps when it comes to starting, improving or expanding a farm operation. Through the CALA Program, eligible producers can access loans for a variety of agricultural projects.
Loans can be used for the following:
- the purchase of farmland
- the construction, renovation or improvement of buildings
- the acquisition of agricultural machinery or equipment
- the refinancing or consolidation of loans in some cases
- other investments related to growing a farm
Eligible agricultural co-operatives may also obtain financing for activities related to the processing, distribution or marketing of agricultural products.
Take action today
Producers who wish to take advantage of the CALA Program must apply through their participating financial institution. A simple conversation with your lender can help you determine if the program is right for your needs and business plans.
Do not let financing hold you back. Find out how the CALA Program can help you invest in the future of your farm.
Learn more about how to apply and which projects are eligible by visiting Canadian Agricultural Loans Act Program.