The federal government unveiled another $100-million fund today to help farm businesses cope with disruptions flowing from the COVID-19 pandemic.
The Agriculture and Food Business Solutions Fund is “to support proven, viable companies through unexpected business disruptions, such as the COVID-19 pandemic,” federal Agriculture Minister Maire-Claude Bibeau said.
Farm Credit Canada is putting the $100 million in Forage Capital Inc. of Calgary.
The money is “to provide companies with the financial stability and flexibility they need to rebuild their business models during challenging times,” the government said.
The fund is for a broad range of businesses, “including companies involved in primary production, agri-tech, manufacturing, packaging and distribution.
“The fund will help companies in times of need through innovative solutions such as convertible debt investments and other flexible financing solutions. Applications will be assessed individually on their merit, and will be supported to a maximum of $10 million.
“The primary goal . . . is to return recipient companies to a sound financial footing,” the government said.
Companies will need need to demonstrate an impact from an unexpected business disruption, such as the loss of a key supplier, temporary loss of a facility or permanent loss of critical staff or leadership.
Funds cannot be used to repay shareholder loans or purchase shareholder equity positions.
