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First Industries Fund loans are provided through EDC Finance Corporation in conjunction with the Commonwealth Financing Authority to strengthen production agriculture entities with less than 100 employees. Projects involved in the financing of major fixed assets such as land, buildings, and equipment qualify for direct loans and loan guarantees.

Key Benefits

  • Below market interest rates
  • Fixed interest rates up to 15 years
  • Loan guarantees for commercial banks

Funding Uses & Purposes

  • Land acquisition
  • Building construction \ expansion \ renovation
  • Long-term machinery & equipment
  • Soft costs related to above items

Eligibility

Borrowers must have less than 100 employees and be involved in the following enterprises:

  • Agricultural producers
  • Food processing
  • Urban / rural supermarkets
  • Farmers’ markets
  • Agri waste and fertilizer management
  • Agri tourism

Loan Structure

EDC Finance will provide a First Industries Fund loan in an amount up to 50% of project costs in either a subordinate or senior position to other project financing. The remaining project financing may come from a commercial bank or borrower injection with a maximum 80% loan to value on real estate or equipment.

Amounts

  • $400,000 maximum loan amount for real estate up to 50% of project costs
  • $5,000,000 maximum loan amount for equipment up to 50% of project costs
  • 50% principal balance loan guarantee to a commercial bank up to $2,500,000

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Terms

  • Full Term Fixed Interest Rate: All borrowers will receive the posted fixed rate option for the life of the loan
  • Up to a 15 year term for real estate
  • Up to a 10 year term for machinery and equipment
  • Loan guarantees are subject to the bank’s prevailing terms and conditions

Job Requirements

Job requirements are waived for all production agriculture projects

All other borrowers are required to retain 1 full time job per $35,000 borrowed or create 1 full time job per $50,000. Job creation projects may count both retained and created jobs to determine the loan amount. Job attainment will be measured three years after loan closing.

Closing Costs

  • 1.5% commitment fee (production agriculture fee is reduced by 0.50% to 1.00%)
  • $2,500 – $3,000 attorney and recording costs
  • Title insurance is required for real estate transactions
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