Potato Financing Program
The new Potato Financing Program announced by the Province of PEI will provide assistance to eligible PEI Potato farmers impacted from the recent suspension of both seed and fresh table stock potatoes entering the United States through a joint partnership of Finance PEI and the Department of Agriculture and Land.
- Eligible applicants can apply to receive a working and/or capital loans with a fixed interest rate of 4% per annum. This financing will be available to assist PEI potato farms obtain the necessary financing to address operational needs (i.e. potato storage costs, crop inputs including fertilizer and spray that may be outstanding, and other farm related costs). Further, this program will help refinance existing potato farm operations that may need longer term financing solutions on a case by case basis;
- Loan will have a 5-year term with a 4% interest rate, amortized over a maximum of 25 years;
- Additionally loans approved under this program will have principal and interest payments deferred for a twelve-month period;
- Finance PEI will continue to work with their existing clients and offer both principal and interest deferral on loans with Finance PEI for a 12-month period (existing clients will be required to contact your account manager at Finance PEI to request this deferral).
This new potato financing program will provide working and/or capital loans with a fixed interest rate of 4% per annum.
Am I eligible to apply?
In order to be eligible for assistance, the following criteria must be met:
- Existing farming activities (startups are not eligible) located and operating in the Province of PEI.
- Harvested a potato crop in the 2021 calendar year;
- Registered to conduct business within the Province of PEI;
- The applicant has a satisfactory credit rating and must not have any defaulted outstanding debt obligation on file in the Province's Central Default Registry.
- The maximum loan to any one group of related companies is $5M. This program will utilize the Canada Revenue Agency definition of related companies for tax purposes.
What is the process to apply?
Eligible potato farmers on PEI will be required to submit the completed application and any other required supporting documentation to Finance PEI such as but not limited to:
- Most recent year-end financial statements;
- Most recent listing of Accounts Payable;
- Most recent property tax bill;
- Application for "Potato Financing Program" from Finance PEI; and
- Amount of 'fresh' potatoes in storage under contract for processing, table stock and seed in CWT
- Best available position through a General Security Agreement including all assets and undertakings of the farming operation;
- Best available position using a collateral mortgage on property(s) owned through the farming operation;
- Personal guarantees
What is the payment process?
Upon approval of an application with Finance PEI and the registration of security documents, funds will be provided directly to Island potato farmers approved through this program.
The program will be administered through Finance PEI and the Department of Agriculture and Land and for further information regarding the Potato Financing Program please email: firstname.lastname@example.org