Eligibility

To be eligible to Components 1 to 4, your project must involve:

• The construction, renovation or improvement of a building.
• The purchase of production equipment and non-self-propelled machinery.
• The initial acquisition of perennial plants or breeding stock.
• Work to enhance the agri-environmental conditions of cultivated land.
• Work carried out to dig a well or a water reservoir and to develop a water supply or irrigation system.
• The implementation of on-farm agri-environmental projects.

To also benefit from the Sustainable Growth Investment Program, your project must:

• Increase the production volume, performance, or profitability of your business.
• Comply with animal welfare and/or organic production standards or any new requirements applicable to agri-food production.
• Improve cropland.
• Adopt agri-environmental practices.

The Sustainable Growth Investment Program has five components, each with specific eligibility requirements.

Component 1: Growth Support

Available to all agricultural and agri-food businesses for the financing of projects related to productions other than those targeted in the 2 component.

The maximum financial assistance is $15,000 on a loan guarantee of up to $150,000.

Component 2: Growth Plus Support

Available to all agricultural and agri-food businesses for the financing of projects related to beef cattle, sheep, or goat production.

The maximum financial assistance is $150,000 on a loan guarantee of up to $600,000.

Component 3: Agri-Environmental Enhancement of Cropland

Available to all agricultural and agri-food businesses for the financing of projects that will enhance the value of cropland or on-farm agri-environmental projects.

The maximum financial assistance is $10,000 on a loan guarantee of up to $100,000.

Component 4: Young Entrepreneurs

Available to all agricultural and agri-food businesses wholly owned by persons over the age of 18 and under the age of 40. In addition, one of these persons must have qualified the same business under the Financial Support Program for Aspiring Farmers within the previous five years.

Eligible farming and agri-food businesses must show an annual gross farm income of at least $50,000 or $30,000 within 60 months of qualifying as a full-time or part-time aspiring farmer, respectively.

The maximum financial assistance is $45,000 on a loan guarantee of up to $300,000.

Some projects are not eligible. These include

• Loan consolidation and secured loan conversion.
• Share purchasing and/or permanent working capital financing.
• Quota purchasing.
• The purchase of land, a house, existing buildings, or any transaction that, according to FADQ, constitutes the purchase of a farm in whole or in part.
• The purchase of assets used primarily, according to FADQ, for purposes other than agriculture.
• Funding for administrative improvements.
• The purchase of self-propelled machinery.
• Leasing contracts (lease-purchase).
• Investments for the replacement of an asset by the same asset or resulting from negligence or related to the regular annual maintenance of buildings, machinery, or equipment.
• The purchase of assets, in whole or in part, belonging to an enterprise having in common, directly or indirectly with the purchaser, an owner, a shareholder, a partner, or a member.
• The purchase of assets resulting from a business merger, demerger, or division of a company into different entities.
• Financing of current operating expenses, including administrative expenses such as FADQ fees.
• Sales taxes (GST and QST).
• Investments made outside of Quebec.
• Permanent short-term needs.

Component 5: Working Capital Loan 

This component is intended for agricultural and agri-food businesses, whether or not they are FADQ financing clients, experiencing financial difficulties or with short-term liquidity needs, particularly as a result of rising interest rates and input costs.

Qualifying businesses will be eligible for a maximum $75,000 financial assistance based on their sales revenues.

Eligibility criteria and requirements for financial assistance:

• A negative cash surplus for the fiscal year preceding application.
• A recent negative working capital position (ratio of less than 1) at the time of application;
• A reasonable prospect of profitability and financial viability;
• Continued participation in, or commitment to participate in, applicable insurance and income protection programs for sound management of business risks.

Businesses in a recovery process with FADQ or another lender, as well as forestry companies, are not eligible. 

Businesses qualified for financial assistance since April 1, 2023 do not have to do anything in this respect; adjustments are made automatically.

This component ends, whichever comes first: 

• on March 31, 2027.
• when the amounts allocated by La FADQ have been depleted. 

Businesses may also be eligible for a working capital loan guarantee if they can show a reasonable prospect of profitability and financial viability. In such case:

• Only loans under $100,000 are subject to a surety;
• Loans over $100,000 are subject to a guarantee;
• For new financing clients or for existing financing clients with financial needs additional to the working capital loan guarantee, the guarantee is applicable.

Checklist – Working Capital Loan (in French only)