May 20, 2020, Regina, Sask. – Michael Hoffort, president and CEO of Farm Credit Canada (FCC), says the need for a $100-million Agricultue and Food Business Solutions Fund launched recently in light of the COVID-19 pandemic will exist beyond the current crisis.
The fund was launched last week in partnership with Forage Capital Inc., a Calgary-based venture capital firm.
It was set up to provide companies with the stability and flexibility they need to rebuild their business models during challenging times.
FCC is the sole investor in the fund, which will primarily offer convertible debt investments, as well as other flexible financing solutions. Convertible debt investments give companies the flexibility of paying down debt or providing the investor with equity in the business.
“This strategic investment is another way FCC is supporting growth and innovation in the only industry we serve – especially at this time,” Hoffort said. “As a commercial Crown corporation, we serve as catalyst for private investment in Canada’s agriculture and food industry and we are here for the long haul, through all business cycles.”
The fund will support a wide range of enterprises in the agri-business and agri-food sector, including companies involved in primary production, agri-tech, manufacturing, packaging and distribution.
The primary goal of the fund is to return recipient companies to a sound financial footing.
In addition to the fund, FCC also recently invested more than $50 million into three new venture capital funds and provided funding to an innovation and growth accelerator to support various parts of Canada’s agriculture and food industry.
These recent investments include:
“Our investments focus on promoting innovation and sustainability within Canada’s agriculture and food industry, supporting start-up to growth stage businesses, as well as filling the gaps in financing for underserved parts of our industry,” Hoffort said. “This is another way FCC can support entrepreneurs and promote innovation and success in this exciting and dynamic industry.”
FCC is Canada’s leading agriculture and food lender, with a loan portfolio of more than $38 billion.
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