CALA

The CALA program builds on and replaces the previous Farm Improvement and Marketing Co-operative Loans Act (FIMCLA) program, which has helped farming operations grow their businesses by guaranteeing loans issued through financial institutions since 1988.

Under the CALA, the federal government guarantees repayment of 95% of the loan to the lender, provided that the requirements of the Act and the Regulations have been respected.

Loan Amounts

Loans are limited to a maximum of:

  • $500,000 for land and the construction or improvement of buildings.
  • $350,000 for all other loan purposes.
  1. The maximum aggregate loan limit for any one borrower is $500,000.
  2. The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister's approval.
  3. The maximum amount eligible for consolidation/refinancing is the total of the outstanding principal balances of the loans to be consolidated/refinanced, to a maximum of $350,000.

For example: If a farmer gets a CALA loan for $300,000 for a tractor, he can still access up to $200,000 for land purchase or building repair, or $50,000 for another implement and $150,000 for land purchase or building repair.

Program Delivery

Mainstreet Credit Union is eligible to administer loans under the CALA.