The guarantee limit of loans from 5 to 15 million $

La limite de garantie de prêts passe de 5 à 15 millions $

SAINT-LÉON-LE-GRAND — It is on the farm of Charles Charette & Fils Saint-Léon-le-Grand that the minister of Agriculture, Fisheries and Food of Quebec, Laurent Lessard, and the president and ceo of La Financière agricole du Québec, Ernest Desrosiers, announced Monday a major change in the field of financing.

Thus, the limit of financial commitment regarding the guarantee of loans goes from 5 to 15 million dollars. According to them, it is important to adapt to the needs of enterprises to ensure their development, considering the growth of the agricultural sector.

“The business models have changed,” said the minister, explaining that this measure has a direct link with the Policy bio-food 2018-2025: Feeding our world, aimed, among others, to stimulate investment in businesses, and in order to fully contribute to the economic development of Québec.

“With this announcement, our government is demonstrating leadership, in order that agriculture remains a driver of major economic development and most especially for our regions. We are happy to respond to the expectations expressed by our agricultural producers. La Financière agricole du Québec has the tools necessary to meet the needs of agricultural enterprises and ensure their growth”, he added.

Offer a financial lever for enterprises with significant assets and potential development, to continue the support offered by La Financière agricole to growth companies and allowing such companies to benefit from the advantages offered by La Financière agricole du Québec: these are the objectives of this adjustment, which shall enter into force on the 21 June.

“This new feature will allow La Financière agricole du Québec to actively pursue its mission in supporting the enterprises in their different development projects. This new offer will be applicable both to primary production in agro-processing. We are very proud to put the shoulder to the wheel to make the Policy bio-food a success, and this, for the benefit of our agricultural producers but also for consumers,” said Mr. Desrosiers.

In terms of funding, The Financial agricultural intervenes in particular in granting a government guarantee that allows a farm business to obtain finance from financial institutions at a lower cost. To this effect, the number of clients by funding amounted to more than 12,000 companies. The insured value amounted to $ 3.6 billion and the portfolio of loan guarantees reached $ 5 billion.

“300 to 350 companies are likely to knock at the door”, said minister Lessard, who has still not ruled on the question of its political future.

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