The Manitoba government’s farm lending agency is expanding a loan guarantee program that helps farmers diversify.
Since 1995, the Diversification Loan Guarantee Program has backed 25 percent of the $75.6 million lent by banks and credit unions to more than 90 projects.
Now, the Manitoba Agricultural Credit Corporation will offer another $50 million in loan guarantees, which is expected to leverage $200 million in private financing.
The government expects the new program to generate $250 million in construction spending, 900 permanent jobs and 500 indirect jobs.
A loan cap of $3 million per project will also be removed.
In a written statement, agriculture minister Rosann Wowchuk said 80 percent of approved projects to date involved family farms.
Guaranteed loans ranged from $50,000 to $3 million under the program, and averaged $830,000. One third of the loan guarantees were for less than $250,000.
The program has provided guarantees for egg, potato, bison, hog, poultry, special crop and dairy operations.
