The federal government along with organizations across Canada have taken immediate action to directly aid individuals and businesses facing challenges due to the global Coronavirus (COVID-19) outbreak.
Some of these include a $27B Economic Response Plan to Canadians which encompasses income tax payment deferments, wage subsidies, emergency care benefits programs, and more. Six of Canada’s biggest banks including TD, Scotiabank, and National Bank of Canada are also extending their own services to clients on a case-by-case basis. Individuals and businesses can defer payments on assets like mortgages, credit cards, and car loans.
In addition to this, Marie-Claude Bibeau, Minister of Agriculture and Agri-Food Canada, announced Monday (March 23) that enhanced support for farm businesses and farmers during COVID-19 will also be available.
“Farmers and producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families. We are taking action now to give them more flexibility to meet the challenges ahead.”
– Justin Trudeau, Prime Minister of Canada
Canadian Agriculture Businesses to Receive Financial Care
Like most Canadian businesses, those in the agri-food industry such as farmers, food processors, and food producers are facing difficult times. There are concerns about having the cash flow required to plant crops, and lost sales due to the financial downturn.
Farm Credit Canada (FCC) has received $5B in additional lending capacity from the federal government to support farmers with the financial requirements to keep food growing and provide for the country.
“FCC will use its resources to find solutions that offer the best chance for recovery going forward so the industry emerges stronger. Initially, the focus will be on assisting the industry in addressing cash flow challenges so that businesses can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this difficult time.”
– Michael Hoffort, FCC president and CEO
This support will require strong collaborations between banks, FCC, credit unions, and other financial institutions.
The PM also noted that all eligible farmers with Advance Payments Program (APP) loans due on or before April 30 will have an additional six months to pay them back.
Farm Credit Canada Current Offerings
Effective immediately, Farm Credit Canada is contributing the following for producers, agri-businesses, and food processors:
- Deferral of principal payments up to 12 months; or
- Deferral of principal and interest payments up to six months for existing loans; and
- Access to an additional credit line up to $500,000, secured by general security agreements or universal movable hypothec (Québec only).
*FCC is a lending organization; therefore, they don’t provide interest-free loans or grants.
Contact Farm Credit Canada
FCC is asking existing customers who have cash flow or other financial concerns to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 to discuss their individual situation and options such as loan payment deferrals and products available to assist with cash flow needs.
Alternatively, their Online Services portal can be used for many transactional needs. Phone appointments are encouraged, however if it is necessary to meet in person, individuals will need to answer screening questions as recommended by the Public Health Agency of Canada before a meeting can be confirmed.
Webinar: COVID-19 Support for Canadian Businesses
Mentor Works is here to support our clients where we can. For additional info about how Canadian businesses can access funding support for COVID-19 impacts, please register for our COVID-19 Support for Canadian Businesses webinar on March 25, 2020.