Round off your capital outlay with FIRA

 
  • Double your capital outlay
  • Get a capital and interest payment holiday of up to three years

Capital outlay loan

The loan doubles the value of your capital outlay.

It can be used to purchase equipment, buildings, farm land, shares or an entire agricultural holding.

 
Between $50,000 and $250,000 in funding

The objective of this funding is to complete the amount of your capital outlay (cash or otherwise), while also respecting your financial means.

 
The capital outlay provided by your business should be at least equivalent to that of FIRA.

Its value includes money, but also assets contributed to the project, including subsidies and physical assets, which are taken into account in order to determine the amount that you may be loaned.

 
Repayment holiday of up to 36 months

We offer you the possibility of obtaining a capital and interest repayment holiday for a period of up to 36 months. This approach is intended to give you the time you need to get your business up and running and to build a working capital reserve before you have to start repaying. Interest is capitalized for the duration of the repayment holiday.

 
The term of the loan is a maximum of 15 years

 

Interest rates

Interest rates are set for five-year terms.

 
What is a capital outlay loan?

It is a subordinated loan, which necessarily complements a principal loan. By topping up the funding required for your project, it improves access to conventional financing.

  • 1. What are the advantages associated with a subordinated loan? Open or Close

    The second-priority financing guarantees associated with the subordinated loan, after the main creditor, provide the opportunity, once the project’s profitability is demonstrated, to obtain the funding still needed to start up, expand or transfer a business.

    The subordinated loan completes the capital outlay required by the creditor. It doubles the capital outlay you’ve provided up to a maximum of $250,000. To this end, as part of your investment to be doubled, we consider various sources of subsidy and tangible contributions in addition to your capital outlay. In order to help you to get your business off the ground, capital and interest repayment may be deferred until the 37th month following the first loan disbursement. The interest will be added to the balance of the loan.

    This repayment holiday allows you to start and achieve a degree of maturity in your business operations before you are required to begin repaying the loan.

    The interest rate for the first five-year term corresponds to the Desjardins five-year fixed-rate mortgage posted when the agreement is signed, which is advantageous for a patient capital loan. Call us to find out more.

  • 2. What does a 36-month moratorium on repayment entail? Open or Close

    The choice to request a 36-month moratorium on repayment is left to the borrower. It is agreed that for this loan, the borrower will be given the possibility to either start capital and interest repayments the month following the disbursement, pay the interest only for the first 36 months, following which the amount will vary according to the remaining amortization of the loan, or claim a full moratorium.

    The full moratorium option requires no interest or capital payment at all for a period of 36 months following the initial disbursement. Starting from the 37th month, capital and interest repayments will be based on the balance, which includes the disbursed sum and accrued interest during the 36-month moratorium.

    The maximum duration of the loan is 15 years regardless of whether the business benefited from the moratorium or not.

  • 3. Can the lessee of a FIRA farm obtain a loan from the Fund in order to purchase this farm? Open or Close

    Subordinated financing options for the purchase of FIRA land by lessees can be studied where appropriate.

 
 

The contents of this page are a brief overall summary of the product. Certain particularities may be considered depending on the situation. Please contact our offices to request further details.