Advance Payments Program: Step 4. After you apply

Step 4. After you apply

How you will receive your advance

Once your application and all required supporting documentation has been received by the Advance Payments Program (APP) Administrator, your eligibility will be assessed and your APP administrator will notify you of the results. If you are found to be eligible for an advance, you will be required to sign a repayment agreement and your APP administrator will either send you a cheque for the eligible advance amount, or deposit the amount into your bank account.

The processing of applications can normally be completed within two weeks, however, application processing times can vary between APP Administrators.

How and when you will repay your advance

You must repay your APP advance as you sell the agricultural product(s) on which the advance was issued. Proof of sale may be required with each repayment. The full advance must be repaid within the timeline set out in your repayment agreement. The repayment period can vary depending on the agricultural product, but is 18 months for most products (24 months for cattle and bison).

What happens if you fail to make a repayment

If you fail to meet the requirements of your repayment agreement, including not fully repaying the advance by the repayment deadline, you will be considered in default.

If you default on your advance, you will be liable to your APP Administrator for the repayment of the outstanding advance plus applicable penalties. You may also be subject to an ineligibility period.

The APP is a federal loan guarantee program. In the event that you and your APP Administrator are unable to reach acceptable repayment terms, the Government of Canada may honour the guarantee to the lender. This means that the Government of Canada would repay to the lender (that is, the financial institution) the outstanding principle and interest for your defaulted advance. Should this occur, your outstanding advance, interest and penalties would become a debt to the Crown.

Please review the information for producers with an outstanding APP advance who apply to the Farm Debt Mediation Service.