Capital is not always easy to come by for entrepreneurs, particularly if they’re new to an industry like agri-foods. But for those who have a business plan and no hesitation to take out a loan, there are a few sources for capital. Organizations like the Alberta Food Processors Association can help nudge entrepreneurs in the right direction. Otherwise entrepreneurs need to research what will best suit their business plan.
Agriculture Financial Services Corporation
The Crown corporation located in Lacombe operates two lines of business: lending and insurance. President Brad Klak says that 80% of AFSC’s lending assists primary agriculture and 20% agri-value industries. The company set up the Value-Added & Agribusiness Program (VAAP) in 2007, and has since provided more than 200 VAAP loans, or just under $100 million.
Banks and Credit Unions
Because agriculture is one of Alberta’s largest manufacturing industries, ATB Financial was established in 1938, financing Alberta’s farms and ranches. Alberta’s credit unions have also played a vital role in the success of agri-food companies. And there’s always Canada’s big five banks (BMO, CIBC, RBC Royal Bank, Scotiabank and TD Canada Trust), who have agriculture financial specialists on hand.
Business Development Bank of Canada
The BDC opens its doors to new entrepreneurs. It doesn’t have a department strictly devoted to agribusiness financing, it does offer advice on starting and growing a business that many entrepreneurs may find applicable. About 28,000 Canadian businesses have received help through BDC.
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