HOME / NON BRM PROGRAMMING / FUTURE FARMER PROGRAM /
FFP: Interest Rebate Assistance*
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Program Contact Name: Sandra MacKinnon Email: sjmackinnon@gov.pe.ca Phone: 368-5647 |
Resources:
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Funding up to $22,500
(* Component is not funded under Growing Forward 2)
The interest rebate component will reduce interest costs for the applicant for a period of three consecutive years on farm operating capital and/or term farm capital loans. Maximum assistance per applicant will be $7,500 annually to a maximum contribution of $22,500 over the three years.
To be eligible for interest rebate applicants must have:
- successfully completed a three year Business Plan
- the required ownership in the farm
- a current Enhanced Environmental Farm Plan
The level of funding available to the applicant will be dependent upon the level of education achieved and training taken during the year: All applicants are eligible for 1% per annum on loan amounts totaling up to $250,000; and if an applicant has completed Grade 12 or equivalent and has participate in 20 hours of formal training events annually he/she will be eligible for a 3% interest rebate on loan amounts totaling up to $250,000.
Terms and conditions for the Interest Rebate
- Loans must be for new farm investment or for farm operating purposes. Loans for refinancing purposes are not eligible.
- Operating loans must be solely used for farm related expenditures.
- The initial draw of funds must be after the applicant is approved for the Future Farmer Program. The only exception is for an farm operating loan.
- In the case where a new loan is combined with an old loan, only the portion of the loan representing new investment is eligible for interest rebate. In this case, all three years of interest rebate will be based on the new investment draw; that is, all interest support payments are assumed to reduce the principal balance of the old loan until the original principal is paid off.
- Interest rebate will be paid on loans approved by a recognized financial institution (chartered banks, Farm Credit Canada, Prince Edward Island Lending Agency or credit unions) or through a financing company providing that the loan is to purchase a farm-related asset.
- Interest rebate will be based upon the amount of interest actually paid in the three years consecutive years selected, to be reimbursed, by the applicant.
- There will be no accumulated interest rebate.
- Interest rebate will be calculated based on the loan amount and the eligible interest rate.
- The applicant must provide to the Future Farmer Advisor:
- An interest rebate application form for each loan.
- An annual statement from the lending institution listing the loan history for the term and verification that the interest has been paid in full. Note: This is only required for the three years that interest rebate is reimbursed.
PROGRAM MANAGEMENT:
- The Program Manager shall have the authority to refuse to consider an application if there is evidence of misrepresentation of pertinent information, or if the Manager believes that an application does not conform to the spirit of the program.
- The applicant may be required to repay the amount of interest rebate received through this program if the farm is sold, or if the farming operation is discontinued within a five year period from the date of the draw of funds, on a declining basis, as follows:
100% repayable within the first twelve months of receiving a benefit
80% repayable after one year
60% repayable after two years
40% repayable after three years
20% repayable after four years
0% repayable after five years
Ver.1 04/12/13
