Alberta Flood Recovery Loan Guarantee Program
Issues business loans to help stabilize operations and rebuild flood-damaged property.
This program provides longer-term assistance to help stabilize operations and assist in rebuilding damaged property to a condition comparable to their state prior to flooding. Eligible businesses, including agricultural producers and not-for-profit organizations, can apply through their financial institution for a loan up to $1 million that is partially guaranteed by the province.
- All loans will have a 75 per cent guarantee from the province through Alberta Financial Services Corporation (AFSC).
- Applicants can apply until June 30, 2014. Lenders will need to apply for the guarantee by July 31, 2014.
- The specific loan guarantee will cover the lender for a period up to 5 years from the date it's issued.
- Lenders will provide demand loans up to $1 million per borrower as determined by each lender's standard procedures, with demonstrated proof of loss from the flood.
- Both new loans and existing loans will be eligible under this program.
- The specific guarantee will be provided to the lender without cost.
- The lender will be responsible to take adequate security on their loan based on the lender's standard practices. Where appropriate, assignment of insurance proceeds or DRP proceeds will be considered.
- The lender will determine the amortization period, in accordance with their standard practices.