Loan Program Embraced by Small Business

More than $2 million is now in the hands of small business thanks to the Small Business Financing/Loan Guarantee Program.

The loans have created or maintained jobs for more than 135 Nova Scotians in 26 businesses. The program is a partnership between Nova Scotia Economic Development, Credit Union Central of Nova Scotia, on behalf of Nova Scotia credit unions, and the Nova Scotia Co-operative Council.

"This enthusiastic response demonstrates very clearly that the program is meeting a need in the small business sector," said Economic Development Minister Ernest Fage. "These modest loans make a tremendous difference in the life of small businesses and the communities they serve."

Last spring, the province committed $6 million in loan guarantees over three years to help meet the financing needs of small business. The credit union sector has placed an additional $2 million in funding to cap the program at $8 million. The program is administered by the Nova Scotia Co-operative Council and loans are approved locally by regional lending committees.

"When we promoted this partnership with the province, we were convinced of both the need and our capacity to deliver," said Marinus Van de Sande, president of the Nova Scotia Co-operative Council. "We are thrilled with the progress to date, and particularly with the economic and employment impact that this program is having on rural communities. This initiative is again evidence that the co-operative sector is an important part of the overall economic solution for Nova Scotia. As a sector, we are fully committed to not only the success of this program, but to growing and expanding the program in the future."

Credit unions have identified the small business market as an opportunity to participate in community economic development.

"This loan has opened a lot of doors for us," said Glenn Martin, co-owner of Freize and Roy Enterprises, Inc., the oldest continuous operating general store in Atlantic Canada, located in Maitland, Hants Co. "We will be offering many new product lines and increasing our staff threefold."

"Credit unions consider small business as a vital and growing segment of our business," said Bernie O'Neil, president and CEO of Credit Union Central of Nova Scotia. "This program enhances credit unions' ability to provide loans to businesses that may not otherwise be able to receive financing."

The credit unions issue the loan and monitor compliance under this program. Loans up to $150,000 are available. The province guarantees up to 75 per cent of the loan; credit unions are responsible for the remaining 25 per cent. The province is also providing $50,000 annually to cover operating costs for the three-year pilot program.

"I like the results this program is getting," said Mr. Fage. "We're working with communities and building a more prosperous Nova Scotia."

Small business owners are encouraged to approach their local credit union to get more information on the Small Business Financing/Loan Guarantee Program.