Cattle Loan Program
The Cattle Loan Program helps Island farmers by financially supporting the breeding and raising of animals destined for the Atlantic Beef Products plant. This program is administered by Finance PEI to stimulate economic growth and expansion in the beef industry.
How much financing is available under this program?
Financing is available under two options, with an individual applicant maximum of $100,000:
- Loan available for feeder animals with financing at prime rate plus one per cent, repayable over an 18 month term, or;
- Loan available to purchase breeding stock with financing at prime rate plus one per cent, repayable over a five year term.
Am I eligible to apply?
To apply for this program, you must:
- Be in good standing with the PEI Cattle Producers and the Department of Agriculture and Fisheries,
- Ensure animal traceability,
- Use best management practices related to animal welfare,
- Be registered in the AgriStability Program,
- Have a satisfactory Personal Property Security Act check,
- Be a resident of Prince Edward Island and be 18 years of age or older,
- Use the loan to purchase cattle, and not ongoing business costs,
- Market animals to Atlantic Beef Products Inc. (If cattle are shipped to another plant or not sold locally, Finance PEI reserves the right to demand loan),
- Sell offspring not being finished from breeding stock financed by this program to local farmers (evidence is required),
- State the purchase cost on invoices and only use third party transactions (costs to be verified based on industry norms),
- Proceeds from sale of animals must be in the name of the Applicant and Finance PEI jointly, and
- Use all funds available through the Advance Payment Program before accessing funding through the Cattle Loan Program.
Are there any other requirements for this program?
These security requirements must be fulfilled in order to access funds through this program:
- Obtain any necessary licences, permits and insurance required for cattle purchase, in accordance to Provincial Regulations,
- General Security Agreement to Finance PEI with a first charge over inventory.
- Should the Advance Payment Program hold a first charge over inventory, Finance PEI will consider a second charge and additional security may be required, such as land, etc.
How do I apply?
Submit the Application for Financial Assistance form to Finance PEI, along with:
- A business plan prepared by a qualified Chartered Accountant. The plan should include three years of cash flow projections and three years of historical financial statements (if applicable), and
- The loan application fee, equal to half of one percent of the amount of the proposed loan.
What happens after I apply?
After you apply for the program, Finance PEI will contact you to discuss the business proposal and the next steps required to determine eligibility.
Where can I find application forms for this program?
Where can I find more information?
Joanne Roberts (Account Manager)
Phone: (902) 569-7631
Fax: (902) 368-6201
Kelly MacDonald (Account Manager)
Phone: (902) 368-6240
Fax: (902) 368-6201