Small Business Loan Guarantee Program
Highlights
This program is designed for mission-based businesses like yours in Nova Scotia. It offers a unique opportunity to secure up to $50,000 in financing to help you start, grow, or expand your enterprise. The funds can be used for various purposes, including working capital, term loans, and lines of credit, ensuring you have the flexibility to meet your business needs.
Why should you apply?
- Flexible Financing Options: Choose from guaranteed loans, lines of credit, subordinated debt, equity, revenue sharing, or royalty agreements.
- Exclusive Access: Only credit unions provide this financing, ensuring investments stay within Nova Scotia.
- Support for Growth: This program is tailored to help businesses like yours make a positive social or environmental impact while achieving financial sustainability.
Being approved for this program can significantly boost your business by providing the necessary funds to expand your operations and enhance your impact. The application process is straightforward, and your local credit union is ready to assist you every step of the way.
Financing Details
Type of Financing:
Guaranteed Loan or Line of Credit, Subordinated Debt, Equity, Revenue Sharing, or Royalty Agreement.
Maximum Investment:
Up to $50,000 per successful applicant.
Repayment Terms and Interest Rates:
- Terms and interest rates will vary based on the type of financing chosen.
- Specific details will be provided by the credit union during the application process.
Eligible Expenses:
- Funds can be used for starting or expanding your enterprise.
- Eligible expenses include operational costs, equipment purchases, and other business expansion needs.
Ineligible Expenses:
- Funds cannot be used for business planning.
- Debt restructuring is not allowed.
- Covering losses is not permitted.
Fees:
- Any fees associated with the program will be detailed by your local credit union during the application process.
Qualifications
- Must be a mission-based private business.
- Must have a positive impact on a social or environmental issue.
- Must be registered and based in Nova Scotia.
- Must be a member of a local Credit Union at the time of fund disbursement.
Must be in good standing with the Canada Revenue Agency.
Disqualifications:
- Funds cannot be used for business planning, debt restructuring, or to cover losses.
Description
This program offers your business a chance to receive up to $50,000 in funding. You can use this money to start, grow, or expand your business. The funds can be provided as a loan, line of credit, subordinated debt, equity, revenue sharing, or royalty agreement.
You can use the money for:
- Purchasing new equipment
- Expanding your operations
- Investing in new projects
However, the funds cannot be used for business planning, debt restructuring, or covering losses.
The program is designed to help businesses that have a positive social or environmental impact. It ensures that investments stay within Nova Scotia, benefiting local communities. This is a great opportunity to secure financial support and take your business to the next level.
Program Steps
Visit Your Local Credit Union: Go to a participating credit union branch near you. This is the first step to start your application process.
Prepare Required Documentation: Gather the necessary documents to support your application. These include:
- Amount requested
- Information on the enterprise (description of the organization, leadership team, etc.)
- Description of the enterprise’s social and/or environmental mission and impacts
- Summary of the opportunity and how the investment will help the enterprise meet its objectives
- Business plan & community support
- Financial sustainability
- Ability to grow and expand impact and how this will be measured
- Ability to service debt and/or meet other financial obligations
- Description of other partners and additional financing leveraged
Complete the Application Form: Fill out the formal application provided by the credit union. Ensure all sections are completed accurately.
Submit Your Application: Hand in your completed application form along with the required documentation to your local credit union.
Credit Union Review: The credit union will review your application and refer it to the Nova Scotia Co-operative Council (NSCC) for adjudication.
NSCC Adjudication: The NSCC will assess your application and make the final investment decision.
Receive Approval and Funds: If approved, discuss the final terms with your credit union. Upon agreement, the funds will be disbursed to your account, allowing you to proceed with your business plans.