The Credit Union Small Business Loan Guarantee Program recently passed a significant milestone by disbursing more than $100 million in loans since 2003.
With this milestone achieved, government will review the program to ensure Nova Scotians are receiving the best possible value for their money so loans continue to be made for years to come.
“The program supports businesses across Nova Scotia in their efforts to grow, create new jobs and give back to their communities,” said Business Minister Mark Furey. “Our government is committed to investing in opportunities for economic growth, and that’s why we doubled the funding for this program since coming to office.”
In 2014, government increased the provincial guarantee on term loans from 75 per cent to 90 per cent. The total guarantee amount available for lending also increased from $25 million to $50 million.
The program has supported almost 2,000 businesses over the past 13 years. About five per cent of loans default.
“The program has operated for more than a decade, and the responsible course of action after that length of time is to make sure it is functioning as intended and meeting the current needs of business,” said Mr. Furey.
The review is expected to take several months, and the program will continue while the review is underway.
Credit unions administer the program and provide loans to small businesses and social enterprises, ensuring lending decisions are made in the community. Government partners with the Nova Scotia Co-operative Council to provide the guarantee and management of the portfolio.