“I feel safe with the
Nova Scotia Farm Loan Board,
unlike a commercial bank.”
- George deVries, Colchester, NS

“Farms have high and low points
and the lender has to be there through everything.
The Nova Scotia Farm Loan Board
is like a partner in the farm.”
- George deVries, Colchester, NS

“The Nova Scotia Farm Loan Board
has given me the tools I need to be successful.”
- Luke denHaan, Annapolis Valley, NS

“They get to know you and your business;
see it first hand and understand your challenges.”
- Ian Tuttle/Ruth Tuttle, Cumberland County, NS

“The Nova Scotia Farm Loan Board
knows farming.”
- George deVries, Colchester, NS

“The biggest difference between the
Nova Scotia Farm Loan Board
and other lenders is the products they offer are better suited
to agriculture - they understand agriculture.”
- Michael Lightfoot, Kings County, NS

Nova Scotia Farm Loan Board

Lending Products

We can help improve the viability of farm operations in Nova Scotia.

Capital Injection

Purpose

The Capital Injection Loan is a working capital injection designed to help clients from depleting their working capital. This type of credit is required for operating funding and is often extremely difficult to source from conventional lenders. It may be used to aid in recovery situations, where for any number of reasons the producer is forced to depopulate the herd; or has suffered a disease-related event in a perennial crop that requires the crop to be destroyed. Working capital is often in very short supply in these situations. The producer is essentially using equity from the farm's balance sheet to borrow this working capital to become established again. The needs for and uses of working capital are endless but at the same time it is the very hardest form of credit to source and repay.

Profile

The NSFLB has developed this loan for clients requiring a cash injection into their business.

This loan can be preapproved.

This is a working capital loan for any agricultural purpose, the principal loan amount of which must be repaid in a specific period with interest. As an example this would suit the needs of mink ranchers, beef operators or apple producers who characteristically may have one or two big pay days per year and need working capital for the rest of the year.

The interest payments can be monthly, quarterly or annual and remain interest only payments as long as the loan revolves to a nil balance once every specific period for the approved number of years.

Repayment may be a lump sum or as cash becomes available to repay the loan.

If nil balance is not achieved in the specified cycle the loan is converted to a conventional term loan as negotiated with the client without the need of a new application process. The working capital authorization will be cancelled with this transition to a term loan structure. A new application will be required to renew a cancelled authorization.

If the client uses the capital injection product to purchase a capital asset such as equipment, this amount can be "carved" out of the authorization and termed out over an appropriate period with regular repayments. There will be no need to apply for a new term loan.

The working capital authorization limit however will be reduced by the carved out amount until a new application is made for a larger limit for the working capital credit.

Security

Loan to Value not to exceed 70%.

The working capital credit would be secured by a combination of real estate; quota; equipment and applicable personal and corporate guarantees. The security may take the form of a Collateral Mortgage, Continuing Collateral Mortgage, existing Agreement of Sale, or General Security Agreement.


Making Payments

Payments may be made by cash, cheque, or electronic funds transfer, in person or by delivery to our offices in Truro or Kentville.

If you wish to be set up for Electronic Funds Transfer (Pre-authorized Debit) complete the Payment Authorization form, attach a void cheque, and deliver or fax it to us. Our fax number is 902-895-7693.


Other Products

  • Life Insurance

    Life Insurance is available to most clients and is a requirement of your loan. Life insurance may be obtained through the Board's Creditor Group Life Insurance policy with Sun Life Assurance, or privately.

  • Fixed Farm Mortgage

    Fixed rate interest for the full amortization period, from 1-30 years.

  • Term Farm Mortgage

    Term rate financing for 3-5-10 Term Options with 1-30 year amortizations.

  • The Quota Loan

    The Quota Loan is for buying milk quota, egg quota, broiler quota, and turkey quota. Clients know that to grow production and keep a farm moving into the future, it takes a big roll of cash.

  • The Farm Debt Consolidator

    The Farm Debt Consolidator is used as a cleanup tool for short-term payables, stagnant operating debt, medium term loans, and restructuring of long-term debt with other lenders.

  • Deferred Product Options

    A deferred loan structure has been developed for general cash flow situations that require a principal deferment to help a farm manage its cash situation.

  • The “Jump Start” Program

    Jump Start program is designed for new entrant farmers. In combination with the Provincial FarmNext plan this program can give a new farmer a real boost to get his or her farm life off to a great start.

  • “Fast Tracktor” - Equipment Financing

    The Fast Tracktor loan authorization is an equipment purchasing line of credit. The loan option provides a preapproved equipment line of credit for clients requiring new or used equipment to sustain their operation.

Nova Scotia Farm Loan Board
Nova Scotia Farm Loan Board
Truro - Head Office

74 Research Drive
Bible Hill, NS B6L 2R2

Tel: 902-893-6506
Fax: 902-895-7693

Kentville - Field Office

Kentville Agricultural Centre
32 Main Street
Kentville, Nova Scotia, B4N 1J5

Tel: 902-679-6009
Fax: 902-679-4997