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Conditions:
All small businesses or start-ups operating in Canada, with gross annual revenues of $10 million or less are eligible with the exception of farming businesses (for a similar program for the farming industry, visit the Canadian Agricultural Loans Act Program).
For real property and equipment, security must be taken on the assets financed.
For leasehold improvements, intangible assets, working capital costs and when financing a line of credit, CUA must take security on other business assets.
Rates:
For term loans, the interest rates are determined between you and CUA and may be floating or fixed.
- Floating: The maximum chargeable is prime plus 3%.
- Fixed: The maximum chargeable is the CUA's single family residential mortgage rate for the term of the loan plus 3%.
For lines of credit, the maximum chargeable is prime plus 5%.
Fees:
- For term loans, the 2% registration fee is based on the total amount loaned under the program.
- For lines of credit, the 2% registration fee is based on the total amount authorized.
Registration fees must be paid by the borrower to CUA and they may be financed.
Each application is evaluated on a case-by-case basis and is based on your business plan, viability and character. The program is designed to empower Nova Scotia businesses to succeed with ongoing support, including access to a wide network of mentors for business coaching. That makes this program accessible and supportive for Nova Scotia small businesses.
Conditions:
All types of businesses are eligible except residential and commercial real estate, beverage rooms and taverns, businesses that offer financial services, investments, or insurance, or any venture of a questionable ethical or legal nature.
Special financing streams for immigrant entrepreneurs and social enterprises as well as the forestry and high-risk sectors are also available.
Rates and Fees:
There is a one per cent administration fee on the total value of the loan. This one per cent is a guarantee fee that is payable by CUA to the Provincial Department of Finance.
Interest rates are defined by the program. Talk to a Small Business Advisor to get a rate that is applicable to you and your business.
Questions?
Review our FAQ below, contact our team by phone 902.492.6500, info@cua.com or by visiting one of our eight convenient branch locations. Do you have questions that aren't here? Let us know! We're here to help.
Q: Who can apply for a small business loan or line of credit through the Program?
A: Most start-ups and existing for-profit, not-for-profit and charitable small businesses in Canada with gross revenues of $10 million or less are eligible to apply for loans under this program. Such businesses can be corporations, sole proprietors, partnerships or cooperatives.
Farming businesses are not eligible under this program. The Canadian Agricultural Loans Act program, administered by Agriculture and Agri-Food Canada, is designed to increase the availability of loans for the purpose of farming.
Q: What will CUA require of me?
A: CUA will require a business plan that shows the viability of your idea. We will also require information regarding your net worth, credit history and other documents that are normally required when applying for a loan.
Q: Does my past credit history count?
A: Credit history is an important piece of your identity. All financial institutions check credit histories when you apply for credit of any kind. The decision to grant a loan in this program will also involve other factors, so those with a less than perfect credit history are still eligible to apply.
Q: Will I need to give personal security or guarantees to CUA?
A: Yes. CUA will evaluate your loan request by following regular credit lending criteria. This will include an assessment of your personal net worth. If your application does not fit normal lending criteria, but CUA feels your business has potential for success, CUA can apply for a loan guarantee to offset their risk.
For real property and equipment, security must be taken on the assets financed. For leasehold improvements, intangible assets, working capital costs and when financing a line of credit, CUA must take security on other business assets.
Q: How much can I borrow with the Program?
A: The maximum loan amount a borrower can access under this program is $1.15 million, which includes a maximum of $1 million for term loans and $150,000 for lines of credit.
Q: What kind of financing does the Program cover?
A: The program can cover term loans or lines of credit.
Q: What is eligible for financing under the Program?
A: Term loans can finance the cost of:
- the purchase or improvement of real property used for commercial purposes
- the purchase or improvement of new or used equipment
- the purchase of new or existing leasehold improvements (i.e. renovations to a leased property by a tenant)
- intangible assets
- working capital costs
- the registration fee
Line of credit loans can finance the purchase of:
- working capital costs
- the registration fee
You cannot use a loan to finance items such as share purchases or assets that a holding company acquires.
This list is not exhaustive. When in doubt, speak with a financial advisor today.
Q: What type of business is eligible?
A: All types of business are eligible, except farming businesses. Any venture of a questionable ethical or legal nature is ineligible. Each application is evaluated on a case by case basis and on the strength of the business plan and viability.
Q: What are the terms of the loan?
A: The terms and conditions of the loan will be negotiated between you and CUA.
Q: What is the interest rate?
A: For term loans, the interest rates are determined between you and CUA and may be floating or fixed.
- Floating: The maximum chargeable is prime plus 3%.
- Fixed: The maximum chargeable is the CUA's single family residential mortgage rate for the term of the
loan plus 3%.
For lines of credit, the maximum chargeable is prime plus 5%.
Q: Is there a fee to access this program?
A: For term loans, the 2% registration fee is based on the total amount loaned under the program.
For lines of credit, the 2% registration fee is based on the total amount authorized.
Registration fees must be paid by the borrower to CUA and they may be financed.
CUA's Small Business Loan fees also apply. Speak to a Small Business Advisor for more information.
Q: Are personal loans eligible?
A: No. The program only applies to business ventures.
Q: Are there any other requirements under this program?
A: If there are any weaknesses in your business plan, CUA may request that you have a business mentor as a condition of the loan.
Q: Is there support available if I need help putting my business plan and application together?
A: Yes. For support with your business, CEED, the Centre for Entrepreneurship Education and Development is an excellent resource. You can also visit CUA's Business Resource Centre.
Q: Who can apply for a small business loan or line of credit through the Program?
A: Residents of Nova Scotia who wish to start a small business and companies or co-operatives in the province who intend to grow their business.
Q: What will CUA require of me?
A: CUA will require a business plan that shows the viability of your idea. We will also require information regarding your net worth, credit history and other documents that are normally required when applying for a loan.
Q: Does my past credit history count?
A: Credit history is an important piece of your identity. All financial institutions check credit histories when you apply for credit of any kind. The decision to grant a loan in this program will also involve other factors, so those with a less than perfect credit history are still eligible to apply.
Q: Will I need to give personal security or guarantees to CUA?
A: Yes. CUA will evaluate your loan request by following regular credit lending criteria. This will include an assessment of your personal net worth. If your application does not fit normal lending criteria, but CUA feels your business has potential for success, CUA can apply for a loan guarantee to offset their risk. The maximum amount of the loan guarantee in most cases will be 90 per cent of the loan value, up to $500,000.
Q: How much can I borrow with the Program?
A: The maximum that can be borrowed is $500,000.
Q: What kind of financing does the Program cover?
A: The program can cover term loans for working capital or lines of credit.
Q: What type of business is eligible?
A: All types of business are eligible, except residential and commercial real estate, beverage rooms and taverns. Any venture of a questionable ethical or legal nature is ineligible. Each application is evaluated on a case by case basis and on the strength of the business plan and viability.
Q: What are the terms of the loan?
A: The terms and conditions of the loan will be negotiated between you and CUA. The maximum term under this program is ten years.
Q: What is the interest rate?
A: Interest rates are defined by the program. Talk to a Small Business Advisor to get a rate that is applicable to you and your business.
Q: Is there a fee to access this program?
A: There is a one per cent administration fee on the total value of the loan. This one per cent is a guarantee fee that is payable by CUA to the Provincial Department of Finance.
CUA's Small Business Loan fees also apply. Speak to a Small Business Advisor for more information.
Q: Are personal loans eligible?
A: No. The program only applies to business ventures.
Q: Are there any other requirements under this program?
A: If there are any weaknesses in your business plan, CUA may request that you have a business mentor as a condition of the loan. Our development agency, the Nova Scotia Co-operative Council, will work with you to find a suitable mentor.
Q: Is there support available if I need help putting my business plan and application together?
A: Yes. If you are a co-operative, the Nova Scotia Co-operative Council, a development agency, has a technical assistance division that can assist you with your business plan, incorporation, business analysis etc.
For support with your business, CEED, the Centre for Entrepreneurship Education and Development is an excellent resource. You can also visit CUA's Business Resource Centre.
Q: Who can apply for a Social Enterprise Loan?
A: Any enterprise that is registered and based in Nova Scotia is eligible, including both start-ups and those looking to grow or expand. An enterprise can take the form of a not-for-profit, a co-operative or a mission-based private business.
Q: What is a mission-based business?
A: A mission-based business is a business whose primary purpose is the common good. It aims to have a positive impact on a social or environmental issue while also staying committed to product development, profit, social responsibility and sustainability.
Q: How much can I borrow?
A: The maximum that can be borrowed is $50,000.
Q: What kind of financing does this program cover?
A: This program covers term loans, working capital or lines of credit.
Q: Are there any projects excluded in this program?
A: Funds from this program cannot be used for business planning, debt restructuring or to cover losses.
Q: What will CUA require from me?
A: CUA will require a business plan that shows the viability of your idea and which demonstrates community impact by meeting a community need or maximizing a community opportunity.
We will also require information regarding your net worth, credit history and other documentation that is normally required when applying for a loan.
Q: Does my past credit history count?
A: Credit history is an important piece of your identity. All financial institutions check credit histories when you apply for credit of any kind. The decision to grant a loan in this program will also involve other factors, so those with a less than perfect credit history are still eligible to apply.
Q: Will I need to give personal security or guarantees to CUA?
A: Yes. CUA will evaluate your loan request by following regular credit lending criteria. This will include an assessment of your personal net worth. If your application does not fit normal lending criteria, but CUA feels your project has potential for success, CUA can apply for a loan guarantee to offset their risk. The maximum amount of the loan guarantee in most cases will be 100% of the loan value, up to $50,000.
Q: What are the terms of the loan?
A: The terms and conditions of the loan, along with the interest rate, will be negotiated between you and CUA. The maximum term under this program is 10 years.
Q: Is there a fee to access this program?
A: There is a 1% administration fee on the total value of the loan. This 1% is a guarantee fee that is payable by CUA to the Provincial Department of Finance.
Q: Are personal loans eligible?
A: No, this program only applies to enterprises which include not-for-profits, co-operatives or mission-based private businesses.
Q: Are there any other requirements under this program?
A: If there are any weaknesses in your business plan, CUA may request that you have a business mentor as a condition of the loan. Our development agency, the Nova Scotia Co-operative Council, will work with you to find a suitable mentor.
Q: Is there support available if I need help putting my business plan and application together?
A: Yes. If you are a co-operative, the Nova Scotia Co-operative Council, a development agency, has a technical assistance division that can assist you with your business plan, incorporation, business analysis etc.
For support with your business, CEED, the Centre for Entrepreneurship Education and Development is an excellent resource. You can also visit CUA's Business Resource Centre.