Frequently Asked Questions

1. How do you qualify as a borrower for a CALA loan guarantee?

The borrower must meet the definition of Farmer and Farming and the purpose of the loan must be eligible under the program. An agricultural co-operative must have a membership of at least 50%+1 farmer members and the loan must be for the processing, distribution or marketing of the products of farming. 

2. Do part-time farmers qualify?

Yes. CALA covers part-time farmers. The definition, simply put is, an individual, partnership, corporation, or co-operative association that is engaged in or intends to be engaged in farming in Canada, for the purpose of making a profit.

3. Do beginning farmers or beginning co-operatives qualify?

Yes. In order to qualify, the borrower must be engaged in or intend to be engaged in farming in Canada for the purpose of making a profit.

4. Can a loan be financed to two or more eligible applicants for the purchase of one implement?

Yes. Each person would be equally responsible.

5. Can a loan be financed under the CALA for the purchase of shares in a farm or farming operation?

Yes. A loan for the purchase of shares in a farm or farming operation can be financed under the CALA for up to $350,000.