Nova Scotia unveils a new business loan program to help newcomers start, expand or buy small businesses

Nova Scotia has introduced a simplified business loan program for newcomers to the province who wish to establish their own small businesses and generate jobs.

The new Immigrant Small Business Financing Program (ISBFP) is a joint initiative of the Nova Scotia Cooperative Council, the Credit Union Council of Nova Scotia, local Credit Unions, the Department of Economic Development and the Office of Immigration. Administered by the Nova Scotia Cooperative Council, the pilot project will be available solely through credit unions across Nova Scotia to offer up to $150,000 loan to immigrants, who have lived in Nova Scotia for less than five years, to help start, expand or buy a small business.

Local credit unions will begin taking applications for this purpose in mid of January next year.

This simplified approach will not only help ensure immigrant entrepreneurs have the opportunity to become small business owners in Nova Scotia and generate jobs, but also help getting business loans in a timely manner, which is usually difficult in Canada as banks and other lending institutions generally do not recognize international credit history of many new immigrants.

"Access to economic opportunities are key factors in a new immigrant's decision to stay or leave the province," said Immigration Minister Len Goucher. "By setting up businesses, new immigrants will also establish stronger roots in local communities, roots that will help newcomers integrate and, ultimately, settle in Nova Scotia."

To support this business loan program, department of Economic Development will invest $2 million in a loan guarantee, which will be reviewed annually, while the Office of Immigration will provide $100,000 a year for operating and other costs, such as business counselling, administration, technical services and legal costs.

The ISBFP is an extension of the existing Small Business Financing Program, which is also administered by the Nova Scotia Enterprises Cooperative and delivered through credit unions. It has helped more than 350 companies create and maintain 2,300 jobs.

"We've helped establish new businesses and empower entrepreneurs with the support they need to create employment for themselves and others," says Dianne Kelderman, chief executive officer of the Nova Scotia Cooperative Council. "We have had great success and now, with a program for immigrant entrepreneurs, we see the opportunity for even greater growth."

In Nova Scotia, there are more than 30,000 small businesses, representing 92 per cent of all businesses in the province. In 2007, more than 150 newcomers interested in starting a new business sought assistance from the Metropolitan Immigrant Settlement Association.