Immigrant Small Business Loan Program:

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• Immigrant Small Business Loan Program
• January 2009

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Partners

• Nova Scotia Co-operative Council
• Credit Union Central of Nova Scotia and Local
  Credit Unions across the Province
• Nova Scotia Economic Rural Development
• Office of Immigration

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Program Overview

• 2 million small business loan guarantee program
  revolving
• 90 guarantee against approved loans
• Loan Amounts up to 150,000 (with guarantee),
  however, credit union can do larger deals
• Available to small businesses in most sectors

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Loan Process

• Local credit unions accept and perform credit
  adjudication as per normal lending practices
• Loan application may be turned down or approved
• If credit union deems guarantee required,
  application by the credit union to Regional
  Lending Committee

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Regional Lending Committees

• 2 credit union reps
• 1 rep for NS Economic Development
• Approve the loan guarantee to the credit union
• Ensure the intent and parameters of the program
  are being met on a case-by-case basis
• Decision of the credit union is final

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Who can apply?

• Any immigrant who is a permanent resident of
  Canada or protected person, for no longer than
  five years, and is living in Nova Scotia for at
  least one year
• Canadian citizens born outside Canada but now
  resident in Nova Scotia for at least one year
• Canadian citizen who has lived abroad and has
  credit history challenges
• Only business applications are eligible. Personal
  applications are not eligible.

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How to apply?

• Clients must complete a commercial loan
  application at their nearest credit union.
• A business plan is required if the business is a
  new start up, and/or historical information
  including financials for expansion or business
  acquisition.

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Is personal security required?

• Credit Union will assess the application as they
  would any loan application, and will take all
  available security including personal assets,
  personal guarantees etc.

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What about past credit history?

• Credit history is an important piece of your
  identity.
• Credit checks are done.
• But it is not the only criteria used in making
  the lending decision.

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Are there any other requirements?

• A credit union, after assessment, may require a
  client to have a credit union volunteer business
  mentor, and/or other training (language,
  financial literacy, management) that will help
  with the skills required to operate and manage a
  business, as a condition of a loan.

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What kind of financing is covered?

• Term loans
• Working Capital
• Lines of Credit

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Business Restrictions?

• All sectors eligible EXCEPT, residential and
  commercial real estate/land development for
  resale,
• residential and commercial rental accommodations
  (does not include tourism accommodations such as
  chalets)

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• Beverage rooms, taverns, gaming and related
  enterprises
• Businesses with a liquor license (such as
  restaurants and cafes) are eligible if the
  majority of revenue (more than 50) is from
  sources other than alcohol
• And any business of a questionable or unethical
  nature or any business not deemed to be in the
  best interest of the Province

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Loan Term?

• Maximum amortization is 7 years

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Loan Interest Rate?

• Negotiated between the client and the credit
  union.

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Program Fees

• No application fee
• There is a 1 guarantee fee, paid to the
  provincial government, on an annual basis, on the
  total value outstanding on the loan guarantee at
  June 30th each year.

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Please Note

• Level 5 English is required
• You DO NOT need an immigration consultant, or a
  broker, to help you access this program.

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Other Supports

• Technical Assistance, such as business planning
  (in collaboration with community partners)
• Credit union volunteer mentors could be a
  condition of the loan if deemed necessary by the
  credit union

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Credit Unions in Nova Scotia

• 71 credit union branches offering the Immigrant
  small business loan program from Yarmouth to
  Sydney.

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• Questions Discussion
• Thank You