Advance Payments Program - 5. What happens after I apply?
5. What happens after I apply?
How will I receive my advance?
Once the application process has been completed and all supporting documents have been received, your Advance Payments Program (APP) Administrator will either send you a cheque for the eligible advance amount, or deposit the amount into your bank account if they are equipped to do so.
How/when do I repay my advance?
You must repay your APP advance as you sell the agricultural products on which the advance was made. Proof of sale may be required with each repayment. The full advance must be repaid within the production period as noted in the repayment agreement with your APP administrator. The production period is 18 months for most agricultural products (24 months for cattle and bison).
What happens if I fail to make a repayment?
If you fail to make a payment within the timelines agreed to in your repayment agreement, you will be considered in default.
If you default on an advance, you will be liable to repay the amount of the outstanding advance plus the applicable interest at a penalty rate. You may also be ineligible for future advances.
The APP is a federal loan guarantee program. As such, in the event that you and your APP Administrator are unable to come to acceptable repayment terms, the Government of Canada may honour the guarantee to the lender. This means that the Government of Canada would repay to the lender (that is, the financial institution) the outstanding principle and interest for your defaulted file. Should this occur, your outstanding advance, interest and penalties would become a debt to the Crown.
Please review the information for producers who apply to the Farm Debt Mediation Service with an outstanding advance under the APP.
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