Changes to Credit Union Regulations Help Businesses Access Federal Relief

  • Service NL

April 24, 2020

In an effort to help alleviate financial hardship on businesses in Newfoundland and Labrador during COVID-19, the Provincial Government has amended the Credit Union Regulations, 2009 to allow credit unions to avail of the Canada Emergency Business Account (CEBA) program.

The federal initiative, announced on March 27, provides up to $40,000 in commercial loans to businesses to alleviate unusual financial pressures during the COVID-19 pandemic. Funding is provided to qualifying businesses through an application process designed by Export Development Canada and must be made through the business’s primary financial institution.

The Credit Union Regulations, as currently worded, could impact the access for some provincial credit unions to this program which would provide much-needed financial assistance to existing commercial customers, especially small to medium-sized businesses. To support the province’s credit unions and their commercial members, government has amended the Regulations to provide all of the province’s credit unions with the ability to access federal commercial loan programs to help Newfoundland and Labrador businesses deal with the financial impacts from the COVID-19 public health emergency.

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“Our government has listened to the concerns raised by our local business community arising from COVID-19, and we are working hard to find solutions within our control to help alleviate these difficulties. By amending the Credit Union Regulations, a number of small to medium-sized businesses in our province who bank with these institutions can now access funding which can be used to cover expenses such as rent, utilities and other critical operational expenses.”
Honourable Tom Osborne
Minister of Service NL

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Learn more 

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Canadian Emergency Business Account

Credit Union Deposit Guarantee Corporation

Media contact
Krista Dalton
Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca

2020 04 24 3:14 pm