To be eligible, 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.
- Carrying out work aimed at the agri-environmental enhancement of cultivated land.
- Conducting work such as digging a well or a water reservoir, as well as developing a water supply or irrigation system.
- The implementation of on-farm agri-environmental projects.
In addition, to benefit from the 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 land under cultivation.
- Adopt agri-environmental practices.
The Sustainable Growth Investment Program has five components, each with specific eligibility requirements.
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 Québec.
- Permanent short-term needs.
Component 5D: 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.
Depending on their sales revenue, eligible businesses can benefit from a working capital loan guarantee of up to $200,000 over a ten-year period with no return of capital for the first three years, along with a financial assistance of up to $30,000.
Eligibility criteria and requirements:
- A negative cash surplus for the fiscal year preceding the request.
- A recent negative working capital position (ratio of less than 1) at the time of the request;
- 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 the recovery process with the FADQ or another lender, as well as forestry companies, are not eligible.
Eligible amount based on sales revenues
Sales revenue as per the latest available financial statements | < $750,000 | > $750,000 et < $1,500,000 | > $1,500,000 |
Amount of loan guarantee | Up to $50,000 | Up to $100,000 | Up to $200,000 |
Bond or guarantee1 | Bond | Bond | Guarantee |
Maximum financial assistance (15%) over 3 years | $7,500 | $15,000 | $30,000 |
- 1 For new financing clients or existing financing clients with additional financial requirements to the working capital loan guarantee, the guarantee is applicable regardless of turnover.
This component ends, whichever comes first:
- on March 31, 2025.
- when the amounts allocated by La FADQ have been depleted.