Federal Agriculture Minister Marie-Claude Bibeau announced the launch of a $100 Million Agriculture and Food Business Solutions Fund on Thursday.
The new fund through Farm Credit Canada (FCC) is being launched in partnership with Calgary-based venture capital firm Forage Capital Inc.
The fund is designed to help provide ag-related companies with the financial stability and flexibility they need to rebuild their business models during these challenging times.
"This type of investment fund will offer companies another option when faced with business disruptions," said Bibeau. "Through the application of flexible and innovative solutions, the investments will preserve jobs and strengthen food security for all Canadians."
FCC will be the sole investor in the fund, that will help support a wide variety of ventures from primary production, to agri-tech, manufacturing, packaging and distribution within the agribusiness and agri-food sector.
The primary goal of the fund will be to help return companies to a sound financial footing.
The fund will use innovative solutions such as convertible debt investments and other flexible financing solutions to help return companies to a sound financial footing.
Applications for the Agriculture and Food Business Solutions Fund will be assessed individually on their merit and will be supported to a maximum of $10 million.
In order to qualify companies will need to demonstrate an impact from unexpected business disruptions, the loss of a key supplier, temporary loss of a facility or permanent loss of critical staff or leadership.
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