In partnership with participating financial institutions, MASC helps provide rural Manitobans with access to credit with reasonable interest rates and terms.
This partnership provides agricultural producers with opportunities to develop and expand their operations, by encouraging financing that the private sector generally considers to be higher risk.
MASC guarantees agricultural loans for the purposes of diversifying operations (Diversification Loan Guarantees), livestock association financing (Manitoba Livestock Associations Loan Guarantees), and obtaining lines of credit with reasonable terms (Operating Credit Loan Guarantees).
MASC's Diversification Loan Guarantee (DLG) program assists producers and agricultural enterprises in diversifying and/or adding value to agricultural commodities by guaranteeing funds borrowed from participating commercial lenders. The program can also be used to finance the purchase of equity shares in New Generation Cooperatives.
Projects considered eligible for the DLG program must comply with laws concerning the environment, and any buildings or improvements associated with the project must comply with land use control laws.
Manitoba Livestock Associations Loan Guarantees provide members of livestock associations with more favourable financing terms than they would be able to access individually. MASC can provide the lender with a guarantee of up to 25% on the association's loan.
MASC guarantees loans to feeder and breeder associations.
MASC's Operating Credit Guarantees (OCG) for Agriculture assist producers in obtaining lines of credit from participating lending institutions with reasonable terms.
The OCG program guarantees loans that can be used for general farm expenditures, living expenses, current year's principal and interest payments on existing loans, and in cases of emergency, limited capital purchases.