NS Premier Announces Enhancements to the Small Business Loan Guarantee Program
On Monday, April 14, 2014, Premier Stephen McNeil announced changes to the Small Business Loan Guarantee Program at a news conference hosted by Valley Credit Union at its New Minas branch.
In his role as Chair of the Credit Union Loan Program Board, Mark Horne, Director of Operations and Lending at Atlantic Central and League Savings and Mortgage Company, served as master of ceremonies for the event. In their remarks, Premier McNeil and Dianne Kelderman of the Nova Scotia Co-operative Council each acknowledged the success of the loan program and the critical role it plays in supporting small businesses throughout the province.
S.G. Levy and Sons Limited used a credit union loan to purchase forestry equipment. As a result, the business has quadrupled log and fiber output. When Greg Levy spoke at the news conference he acknowledged how difficult it had been for him to get financing until he applied through the Small Business Loan Guarantee Program. His statement that “credit unions believe in the dream I have to run and grow my business” reinforces the difference credit unions make for small businesses and entrepreneurs throughout our region.
Nova Scotia credit unions, in partnership with the Nova Scotia Co-operative Council, Atlantic Central, and the Province of Nova Scotia, are celebrating their 11th year of involvement in the Small Business Loan Guarantee Program. While the program currently offers financing streams to agri-business, immigrants, the forestry sector, social enterprises, and high risk enterprises, the success of the program has resulted in new financing streams being added for the fisheries sector and Black Business Initiatives. To date, the program has invested over $68 Million in guaranteed loans to 1,423 small businesses in Nova Scotia, with loan losses of less than 4%. This has resulted in the creation of over 9,000 jobs, primarily in rural parts of Nova Scotia. Fourteen Nova Scotia credit unions currently participate in the program.
The program changes, effective April 14th include:
- The program has been increased from $25 million to $50 million.
- The 75% guarantee has been increased to 90% in all programs, on all term loans.
- The guarantee will remain at 75% on lines of credit (should a line of credit be converted to a term loan the 90% will apply).
A copy of the Chronicle Herald’s story from the April 14th news conference can be viewed by clicking here.