Nursery growers are reporting delayed and cancelled orders, which is going to severely impact cashflow this Spring and inventory levels over the next year. Nursery growers are strongly urged to apply for AgriStability NOW! Application Deadline now April 30, 2020 The reason is three-fold:
- You must have an AgriStability account to access other programs.
- Signing up for AgriStability shows that you are working to minimize your business risk, an indicator to the government that you are taking this situation seriously. (This is one of the key indicators they look for when assessing whether an industry should be provided with crisis funding.)
- BCLNA is actively working with the BC Ministry of Agriculture, talking to both the Deputy Minister and the Asst Deputy Minister within the last week to ask them to bolster up the net margin loss to 15%. If you don’t have your account in place, you can not apply retroactively to access the 15% if it goes into place.
It is in your best interests to:
- Borrow as much cash as possible, at no interest or prime, and keep it in your bank account. Below is details about two programs, from the Farm Credit Corp Program (up to $500k) and the Advanced Payment Program (APP) through Agricultural Credit Corp (ACC), respectively
- Minimize all your expenses. No one has any idea how this situation is going to pan out, so plan to build your production for fall and next year.
Brent Mooney, BCLNA’s Treasurer, has gathered information on several of the programs that provide loans (some at zero interest) for growers. It should be noted that the Stay of Default is a critical piece.
1. ACC and the APP Stay of Default:
- For now it applies to Potted/Greenhouse program payments on or before April 30, 2020. Get on it right away if you have a March 30th payment before that comes out of your account..
- AAFC will deal with the Trees & Shrubs payments due on or before Sept 30, 2020 as we get closer to those dates.
- Unlike previous years and other sectors the $1 million cap is still in effect for total borrowing.
Please contact [email protected] or 1-888-278-8807.
2. FCC Deferral of Principal and Interest:
- Get your request in ASAP as FCC then has to send you some paperwork.
- This is a quick way to conserve cash and the deferral is added to your amortization schedule, so no immediate repayment requirements.
Contact FCC at 1-888-332-3301, [email protected] or at the Abbotsford office 604-870-2417
3. FCC Working Capital Loan up tp $500k:
- The loan is based on a working capital analysis.
- Amount of loan approved is based on “working capital needs”.
- 24 month old financials will be accepted.
- Term is 2 years and separate from any other loans.-
- Secured by General Security Agreements (GSA).
- No details yet on re-payment schedules.
- FCC will allow ACC loans to take 1st position on APP loans.
- There are no fees on this product.
It is likely that these programs may be fine tuned as the days and weeks proceed. It is crucial to conserve cash and take advantage of every opportunity to bring more cash into your business or avoid cash leaving. We have no idea where this is going or for how long!
Cash is king!
BCLNA member growers are welcome to contact Brent at 604-841-5806 or [email protected].
Note: non-member businesses are contacting BCLNA to ask for help. Our focus will be on members who have been paying ‘the freight’ enabling BCLNA to work on supporting you now.
“Membership has its Privileges”