Loan Program Leaps Into Second Year

Small business in Nova Scotia is booming and its growth is reflected in the province's record-breaking job numbers. The overwhelming uptake of $3.5 million in loans through the new Credit Union Small Business Financing/Loan Guarantee Program will yield more than 220 new jobs for Nova Scotians.

In the first 10 months of the program, 44 small businesses from various regions of the province and business sectors have qualified for loans. To keep the program progressing at its current momentum, the province has guaranteed another $1 million of the $6 million previously allotted for the three-year pilot program.

"Making these funds available now ensures that this exciting growth continues," said Economic Development Minister Ernest Fage. "Amending our agreement with the credit union now bridges what could have been a gap in lending until the second year of the program officially begins in July."

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.

"The commitment of the co-operative sector to Nova Scotia's economic growth strategy through the credit union system and this program makes a significant contribution to the success of small businesses and the quality of life in the communities they serve," said Mr. Fage.

The province committed $6 million in loan guarantees over three years to help meet the financing needs of small business. The credit unions are assuming the risk on the balance -- $2 million -- in order to make $8 million available for lending. The program is administered by the Nova Scotia Co-operative Council and loans are approved locally by regional lending committees.

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