FCC unveils new loan program for young entrepreneurs

Farm Credit Canada announced a new Young Entrepreneur Loan program Thursday that offers up to $1 million to borrowers under 40 to invest in agriculture retail, manufacturing and food processing. The loan can be used for the purchase or improvement of agriculture-related assets or the purchase of shares in an agriculture-related business, including those in the agri-food sector.  The FCC said in a news release “this access to capital will allow these businesses to take advantage of new opportunities, grow the economy and create more middle class jobs. Federal Agriculture Minister Lawrence MacAulay said “the Canadian agriculture and agri-food sector needs more young people to get engaged, because they bring the energy and innovative ways of thinking that grow the sector and keep it on the cutting edge.” FCC president and CEO Michael Hoffort said “from production to food processing and retail, Canada’s agriculture industry needs the ideas, passion and energy of our young people. And as they enter into this dynamic industry, FCC is committed to helping them succeed. “By providing specialized loans for young farmers and entrepreneurs, we are helping the next generation get established and contribute to Canada achieving its full potential as a leading food supplier worldwide.”  The Young Entrepreneur Loan has a 25 per cent minimum down payment requirement, custom variable and five-year fixed rates. Similar to the Young Farmer Loan, which was introduced in 2012 and enhanced last December, there are no processing fees. During fiscal 2015-16, FCC approved more than $2.6 billion in financing to farmers and entrepreneurs under age 40.  The announcement I want to see is that the government is privatizing FCC. Get that thing off the government books before its optimism ends in another painful bubble burst.