In partnership with credit unions throughout Newfoundland and Labrador, the Provincial Government is introducing a new two-year pilot project to assist small businesses with growth and expansion.
The Small Business Loan Guarantee Pilot Program will provide loan guarantees for term loans issued by credit unions under their existing loan programs. The Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, and the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, today announced that the Provincial Government will issue guarantees up to $5 million in total for the duration of the program.
Credit Unions are responsible for loan adjudication in accordance with their established lending criteria and due diligence process. Through the agreement, participating credit unions will provide the Department of Industry, Energy and Technology with activity reports on a quarterly basis. Commercial loans, including those guaranteed under the pilot program, will be subject to standard audit and examination by the Credit Union Deposit Guarantee Corporation. The Department of Digital Government and Service NL is responsible for the regulation of the credit union industry.
Program details, eligibility requirements and information on the application process are available at all credit unions in Newfoundland and Labrador. For more information related to the Small Business Loan Guarantee Pilot Program, please contact a credit union location. The participating branches are:
- Atlantic Edge Credit Union
- Community Credit Union
- Eastern Edge Credit Union
- Hamilton Sound Credit Union
- Newfoundland and Labrador Credit Union (NLCU)
- Public Service Credit Union
- Reddy Kilowatt Credit Union
- Venture Credit Union
Credit unions are member-owned financial co-operatives. The credit union system in Newfoundland and Labrador consists of eight credit unions with nearly 300 employees, and assets totaling more than $1.4 billion.
Quotes
“Credit unions in Newfoundland and Labrador continue to be responsive to the changing needs of their members. The partnership between our government and credit unions for this new loan guarantee program will give small businesses better access to capital, allowing them to maintain and create new economic opportunities in multiple sectors and regions of our province.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
“We are pleased to work with credit unions in this province to help small businesses thrive as part of our provincial economy. This pilot program provides credit unions with the ability to offer financing to our local business community as they grow their operations.”
Honourable Siobhan Coady
Deputy Premier, Minister of Finance and President of Treasury Board
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