Social Enterprise Loan Guarantee Program

The program is designed to provide “social enterprises” with access to credit exclusively through local credit unions.
What is a Social Enterprise?
Social enterprises are defined as enterprises who use market-oriented production for the sale of goods and/or services to further a public benefitmission. In other words, the enterprises must be operating a business activity – selling a product or service.
The social enterprise can take the form of a not for profit, non-profit, cooperatives and social purpose businesses which are for profit but designed to fulfill a social mission.
Social enterprises have a strong emphasis on meeting a community need or maximizing an opportunity that will benefit the broader community. Examples may be, (though not limited to), a local daycare, transportation system for seniors or persons with disabilities, recycling depot, homecare and healthcare services etc.
Organizations providing charitable services are not eligible.
Loan Amounts: the maximum amount of any loan, to any one borrower cannot exceed $500,000. For purposes of this provision, a borrower shall include the borrower and all related persons, affiliates, related companies and subsidiaries.
The maximum amount any applicant can access under this program is the higher of:
 1.The total revenue generated in the previous fiscal year
 2.The average revenue generated over the preceding three years
Amortization: Maximum 10 years.
Security: the credit union is to secure each loan in a manner consistent with the normal practice for commercial loans. Such security may include and not belimited to mortgages, chattel mortgages, debentures, assignment of insurance, general security agreements and personal guarantees.
Guarantee Amount: 90%
Interest Rate: Negotiated between the applicant and the credit union
For further information please contact your local credit union or 
Dianne Kelderman, Program Manager, Nova Scotia Co-operative Council