Diversification Loan Guarantees (DLG)

Overview of the Diversification Loan Guarantees (DLG) program:

MASC recognizes that availability of credit under reasonable terms and conditions from traditional lenders is vital to rural Manitobans. Through partnerships with private sector lenders, MASC is able to offer a variety of guarantee programming. MASC can provide a guarantee to lenders for producers interested in diversifying their current operations and/or adding value to agricultural commodities. The program assists in overcoming problems such as equity and security shortfalls, limited production experience, and new products.

Benefits of the Diversification Loan Guarantees (DLG) program:

• There is no limit to the maximum loan guarantee. MASC will provide 25% of the principal amount of a loan approved by a participating lender. Interest will be the individual lender's prime plus 2.0%.

Eligibility criteria of the Diversification Loan Guarantees (DLG) program:

• The program is available to individuals, partnerships, corporations, and co-operatives. The majority of the applicants must be residents of Manitoba and Canadian citizens (or have lawful permanent residence status).
• The project must demonstrate, based on the business plan, satisfactory cash flow and long-term profitablility to service the debt.