Business Loan Program Targets Immigrants Living in Nova Scotia

Immigrants who have recently moved to live in Nova Scotia can soon get down to business with the help of the new Immigrant Small Business Financing Program.

The program offers immigrants, who have lived in Nova Scotia less than five years, up to $150,000 to help start, expand or buy a small business.

Many immigrants, even those with stable banking practices in their home countries, often find it difficult to get business funding as banks and other lending institutions in Canada generally do not recognize international credit history.

In Nova Scotia, there are more than 30,000 small businesses, representing 92 per cent of all businesses in the province.

"Small businesses drive the Nova Scotia economy," said Economic Development Minister Angus MacIssac. "This program will help ensure immigrant entrepreneurs have the opportunity to become small business owners in this province and generate jobs."

The pilot project is available solely through credit unions across Nova Scotia. It will be administered by the Nova Scotia Co-operative Council, and is a joint initiative of the council, the Credit Union Council of Nova Scotia, local Credit Unions, the Department of Economic Development and the Office of Immigration.

Credit unions will begin taking applications in mid-January.

Economic Development will invest $2 million in a loan guarantee to the Small Business Immigration Financing Program, which will be reviewed annually. Immigration will provide $100,000 a year for operating and other costs of the program, such as business counselling, administration, technical services and legal costs.

"Access to economic opportunities are key factors in a new immigrant's decision to stay or leave the province," said Immigration Minister Len Goucher. "By setting up businesses, new immigrants will also establish stronger roots in local communities, roots that will help newcomers integrate and, ultimately, settle in Nova Scotia."

The Immigrant Small Business Financing Program is an extension of the existing Small Business Financing Program, which is also administered by the Nova Scotia Enterprises Co-operative and delivered through credit unions. It has helped more than 350 companies create and maintain 2,300 jobs.

"We've helped establish new businesses and empower entrepreneurs with the support they need to create employment for themselves and others," says Dianne Kelderman, chief executive officer of the Nova Scotia Co-operative Council. "We have had great success and now, with a program for immigrant entrepreneurs, we see the opportunity for even greater growth."

Last year, more than 150 immigrants interested in starting or buying a new business approached the Metropolitan Immigrant Settlement Association for assistance.

"We can assist new immigrants with many services when they come to Nova Scotia," said Claudette Legault, executive director of the Metropolitan Immigrant Settlement Association. "But having access to business loans in a timely manner is very significant in terms of determining their financial success."

For more information on the Immigrant Small Business Financing Program, visit the Economic Development website at www.gov.ns.ca/econ . More information on the application process will be available on the website in mid-January.