Introduction

It is recommended that you speak with your local bank or credit union before contacting the organizations below. Government grants are not as common as they once were and many government programs now take the form of loans. For further information on this matter, please take a look at our Fact Sheet, The Truth About Grants.

Overview of Business Financing

In the early stages, the most important sources of financing will probably be yourself, friends, relatives and financial institutions. If you are looking into applying for a business loan, it is important to study different avenues of financing. We have included here a few brief definitions of various sources of financing.

Banks and Other Financial Institutions:

The most common source of financing for small businesses is the chartered bank. Banks can provide a number of financing options, such as short-term loans, long-term mortgage loans and, in some cases, loans against inventory or accounts receivable. Other important sources of financing in this category include trust companies and credit unions.

Credit Cards and Personal Lines of Credit:

For very small firms and home-based businesses, credit cards and lines of credit often provide a ready means of obtaining small scale debt capital. While convenient, they bear relatively high rates of interest and limit the amount of capital available.

Love Money:

The support of your friends and family can be the kick-start to get your business up and running. Money from friends and family can also be used as equity to attract additional sources of financing.

Partners and Business Angels:

Angels are simply wealthy individuals who invest directly in small firms owned by others. Angels tend to finance the early stages of the business. Attracting partners who make an investment in the business is also an option.

Venture Capitalists:

Institutional venture capitalists are among the more important sources of risk capital. Venture capitalists are usually private or publicly-sponsored pools of capital that acquire a level of participation in the firm applying for financing. Venture capital can be an effective means of increasing the growth potential of the firm.

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Financing Programs

Business Development Program

Through its Business Development Program, ACOA provides interest-free, unsecured business loans to certain business types: information technology and knowledge-based businesses, manufacturing and processing, aquaculture, life science, innovation, oil & gas, aerospace & defense, tourism, and businesses that provide a service to business. ACOA does not finance retail, wholesale, services of a personal or social nature, real estate or government services.

For the ACOA Account Manager nearest you, please contact:
 Canada Business - Nova Scotia
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: 902-426-8604
Fax: 902-426-6530
Toll-free (information): 1-888-576-4444
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: cbns@canadabusiness.ca
Web site: http://www.bsc-sec.ca/ns

Or, if you are a Cape Breton area resident:
 Enterprise Cape Breton Corporation
70 Crescent Street
Sydney, Nova Scotia  B1S 2Z7
Telephone: 902-564-3600
Fax: 902-564-3825
Toll-free (information): 1-800-705-3926
E-mail: ecbcinfo@ecbc-secb.gc.ca
Web site: http://www.ecbc.ca/e/default.asp

See the document: Business Development Program

Business Development Bank of Canada (BDC)

The Business Development Bank of Canada is Canada’s small business bank. It offers financial services, consulting services, subordinate financing and venture capital. BDC plays a leadership role in delivering timely and relevant financial and management services, with a particular focus on the emerging and exporting sectors of the economy.

BDC offers flexible term financing for a variety of commercially viable projects, including expansion projects, plant overhauls, the purchase of existing businesses and the acquisition of fixed assets. In some cases, financing may be used to reconstitute working capital depleted by capital expenditures or to finance sales growth. There are four locations in Nova Scotia.

For more information, please contact:
 Business Development Bank of Canada
Suite 1400
Cogswell Tower - Scotia Square
2000 Barrington Street
Halifax, Nova Scotia  B3J 2Z7
Telephone: 902-426-7850
Fax: 902-426-6783
Toll-free (information): 1-877-BDC-BANX (1-877-232-2269)
E-mail: info@bdc.ca
Web site: http://www.bdc.ca/en/home.htm

See the document: BDC Financing

Canada Small Business Financing Program (CSFB)

The CSBF Program, under the Canada Small Business Financing Act, can assist businesses in obtaining term loans and capital leases of up to $250,000 to help finance fixed asset needs. The loans are made directly by a qualified lender (chartered banks, caisses populaires, Alberta Treasury Branches, and most credit unions, and the leases are issued by participating lessors. The CSBF Program seeks to increase the availability of loans and capital leases for establishing, expanding, modernizing and improving small and medium-sized businesses in Canada.

For more information, please contact: For technical questions about the Act and inquiries from financial institutions:
Canada Small Business Financing Program
Industry Canada
5th Floor West
235 Queen Street
Ottawa, Ontario  K1A 0H5
Telephone: 613-954-5540
Fax: 613-952-0290
Toll-free (information): 1-866-959-1699
E-mail: CSBFA-LFPEC@ic.gc.ca
Web site: http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/h_la02855.html

See the document: Canada Small Business Financing (CSBF) Program

Industrial Research Assistance Program - (IRAP)

The NRC Industrial Research Assistance Program (NRC-IRAP) provides a range of both technical and business oriented advisory services along with potential financial support to growth-oriented Canadian small and medium enterprises. The program is delivered by an extensive integrated network of 260 professionals in 100 communities across the country. Working directly with clients, NRC-IRAP supports innovative research and development and commercialization of new products and services.

The IRAP portfolio of services has four main components:

For more information, please contact:
NRC Industrial Research Assistance Program
National Research Council Canada
1411 Oxford Street
Halifax, Nova Scotia  B3H 3Z1
Telephone: 902-426-3138
Fax: 902-426-1624
Toll-free (information): 1-877-994-4727
Web site: http://www.nrc-cnrc.gc.ca/main_e.html

See the document: NRC Industrial Research Assistance Program (NRC-IRAP)

Business Financing Program - Nova Scotia Business Inc. (NSBI)

The purpose of the Business Financing Program is to provide financial assistance for the establishment of new businesses and the expansion of existing operations that represent the potential for net economic benefit to the province. Assistance is primarily by way of loans but other types of assistance may be considered.

Manufacturing, processing, high technology, aerospace, pharmaceutical and environmental technology based industries are a focus for assistance, although businesses in other sectors of the economy are also eligible. Not eligible are: charitable clubs and organizations; residential or rental accommodation, except for tourist facilities; lending, financial and insurance businesses; real estate development; retail, wholesale and construction; taverns, lounges, billiard halls and similar establishments

For more information, please contact:
 Nova Scotia Business Inc.
Suite 701
World Trade & Convention Centre
1800 Argyle Street
P.O. Box 2374
Halifax, Nova Scotia  B3J 3E4
Telephone: 902-424-6650
Fax: 902-424-5739
Toll-free (information): 1-877-297-2124 (in Nova Scotia)
1-800-260-6682 (in North America)
E-mail: info@nsbi.ca
Web site: http://www.novascotiabusiness.com/

See the document: Business Financing

Seed Capital Program

The Seed Capital Program offers repayable, unsecured, personal loans up to $20,000 to launch, expand, or improve your small business. Applicants under 35 years of age may use the loan to start-up, expand or modernize a business, while applicants 35 years of age and older may use the loan to start a new business only. If you are under the age of 19, you will require the co-signature of a parent/guardian. Visit the web site: http://www.acoa-apeca.gc.ca/English/ImLookingFor/ProgramInformation/Pages/ProgramDetails.aspx?ProgramID=3

For the Seed loan office nearest you, please contact:
 Canada Business - Nova Scotia
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: 902-426-8604
Fax: 902-426-6530
Toll-free (information): 1-888-576-4444
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: cbns@canadabusiness.ca
Web site: http://www.bsc-sec.ca/ns

See the document: Seed Capital Program

Self-Employment (SE) Program

Service Canada delivers the Self-Employment Program to assist unemployed eligible individuals create jobs for themselves by starting a business. The program provides eligible individuals with financial support for a fixed period, and supports clients interested in starting a business with coaching, technical and other forms of assistance. Participation in the program is subject to the availability of resources at the local level.

For a complete list of all Service Canada Centres, please check the government listings in your phone book or see the following document: Service Canada Centres - Supplement for Nova Scotia

See the document: Self-employment Program - SE

Small Business Financing/Loan Guarantee Program

The Small Business Financing/Loan Guarantee Program provides financing for start-up and expansion for all types of business, except residential and commercial real estate, beverage rooms, taverns, and any other venture of a questionable, ethical, or legal nature. This program is delivered exclusively through credit unions in Nova Scotia and offers financing up to $150,000. Terms of the loan will be negotiated between you and your credit union.

To find the credit union nearest you, please call 1-800-668-2879 or visit the web site: http://www.ns-credit-unions.com/default.asp?id=190&sfield=content.id&search=44&mn=1.19.33.45

See the document: Small Business Financing/Loan Guarantee Program

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Geographical Financing

Community Business Development Corporations (CBDC)

These organizations are found in rural areas of Nova Scotia. CBDCs provide technical services and financial assistance in the form of loans, loan guarantees, and equity assistance to a maximum of $150,000 per business. CBDCs are located in Bridgetown, Windsor, Amherst, New Glasgow, Inverness, Sydney Mines, Sydney, Guysborough, Musquodoboit Harbour, Liverpool, Shelburne, Yarmouth, and Digby.

For more information, please contact:
 Community Business Development Corporations
Toll-free (information): 1-888-303-2232
Web site: http://www.cbdc.ca/

See the document: Community Business Development Corporations (CBDCs)

Enterprise Cape Breton Corporation (ECBC)

Enterprise Cape Breton Corporation (ECBC) assists in the financing and development of industry on Cape Breton Island as well in and around the town of Mulgrave on mainland Nova Scotia. The Corporation is charged with the responsibility for promoting and assisting the financing and development of industry in the region, providing employment outside the coal-producing sector and broadening the base of the local economy.

For more information, please contact:
 Enterprise Cape Breton Corporation
70 Crescent Street
Sydney, Nova Scotia  B1S 2Z7
Telephone: 902-564-3600
Fax: 902-564-3825
Toll-free (information): 1-800-705-3926
E-mail: ecbcinfo@ecbc-secb.gc.ca
Web site: http://www.ecbc.ca/e/default.asp

See the document: Enterprise Cape Breton Corporation

Micro Credit Program

Residents of Nova Scotia starting a small business in rural areas of Nova Scotia are eligible for consideration. The Micro Credit Program assists with small amounts of funding between $1,000 and $10,000. Exceptions include residential and commercial properties, beverage rooms, taverns, and gaming businesses. The applicant must demonstrate a realistic market potential for its products or services and provide an ability to repay the loan amount and meet the day-to-day operating needs of the business. Visit the Web site: http://www.ns-credit-unions.com/default.asp?id=190&sfield=content.id&search=189&mn=1.19.33.98

The Micro Credit Program is available through three credit unions:

Bergengren Credit Union
257 Main St.
Antigonish, Nova Scotia  B2G 2C1
Telephone: 902-863-6600

Community Credit Union
33 Prince Arthur St.
PO Box 578
Amherst, Nova Scotia  B4H 4B8
Telephone: 902-667-7541

iNova Credit Union
6175 Almon St.
PO Box 8135, Station "A"
Halifax, Nova Scotia  B3K 5L9
Telephone: 902-453-1145


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Specialized Financing Programs

Aboriginal Business Canada

Aboriginal Business Canada provides support to Aboriginal entrepreneurs seeking to start or expand their own businesses or to improve existing ones by giving them access to financing and information that will help them enhance their management skills. Canadian Status Indians and Non-Status Indians, Métis and Inuit entrepreneurs are eligible for this program, as are partnerships, for-profit and non-profit groups, and other entities that are majority-owned or controlled by Aboriginal persons. Visit the web site: http://www.ainc-inac.gc.ca/ecd/ab/abc/index-eng.asp

For more information, please contact:
 Aboriginal Business Canada
Indian and Northern Affairs Canada
Suite 500
CIBC Building
1809 Barrington Street
Halifax, Nova Scotia  B3J 3K7
Telephone: 902-426-2018
Fax: 902-426-1643
Web site: http://www.ainc-inac.gc.ca/ecd/ab/abc/index-eng.asp

See the document: Aboriginal Business Canada

Black Business Initiative (BBI)

The Black Business Initiative (BBI) provides training and financial assistance to the Nova Scotia African-Canadian business community and supports a diverse range of business sectors including the high-tech, manufacturing, tourism, and cultural sectors. BBI offers loans up to $25,000 and has representatives for all regions of Nova Scotia.

For more information, please contact:
 Black Business Initiative
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: 902-426-2224
Fax: 902-426-6530
Toll-free (information): 1-888-576-4444
E-mail: bbi@bbi.ns.ca
Web site: http://www.bbi.ns.ca

See the document: Black Business Initiative

Canadian Youth Business Foundation (CYBF) Loan Program

In combination with a mandatory mentoring program, the Canadian Youth Business Foundation provides aspiring entrepreneurs aged 18 to 34 with start-up financing of up to $15,000, low interest rates, flexible 3-5 year repayment schedules, and no principal payments for the first year. Existing CYBF entrepreneurs who want to grow their business and need additional financial help, can also apply for CYBF’s Expansion Financing program to receive up to $10,000.

For more information, please contact:
 Canadian Youth Business Foundation
Suite 1410
100 Adelaide Street West
Toronto, Ontario  M5H 1S3
Fax: 1-877-408-3234
Toll-free (information): 1-800-464-2923
E-mail: info@cybf.ca
Web site: http://cybf.ca/contact-us/


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Web Sites and Publications of Interest

Sources of Financing - Search for Financing

Sources of Financing can help you locate traditional or alternative sources of financing for your small business. You will find an extensive directory of Canadian financial providers, information on different types of financing, and tips to help you secure financing. Visit the web site: http://www.ic.gc.ca/epic/site/sof-sdf.nsf/en/Home

See the document: Sources of Financing

Financial Calculators

The following financial calculators can be found at the link below:

Visit the web site: http://www.cba.ca/en/ViewDocument.asp?fl=177&sl=184&tl=&docid=378.

Micro Credit Lenders

"Micro credit" can be defined as small loans made to individuals to undertake self-employment or to start a very small business. This type of financing may be provided through a number of different sources: independent non-profit organizations, community economic development programs, commercial financial institutions, etc.

Usually, a micro credit lender serves a particular geographic area or community, or a particular group. The loans are typically under $5,000 and for entrepreneurs who have not been able to secure financing through traditional lenders. Many micro credit lenders offer some form of technical assistance such as business training, mentoring, peer exchanges and/or networking opportunities in conjunction with their loans.Visit the web site: http://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/en/h_so03327e.html.

For more information, please contact:
 Canada Business - Nova Scotia
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: 902-426-8604
Fax: 902-426-6530
Toll-free (information): 1-888-576-4444
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: cbns@canadabusiness.ca
Web site: http://www.bsc-sec.ca/ns


Steps to Growth Capital - Industry Canada

There is a vast pool of growth capital in Canada, but to find it you've got to know what you're looking for. This is a guide for entrepreneurs seeking to tap into that pool. Visit the web site: http://www.ic.gc.ca/epic/site/stgc-evcc.nsf/en/home

Venture Capital

Broadly defined, Venture Capital (VC) is funds invested or available for investment in potentially highly profitable enterprises at considerable risk of loss. Venture capital is often used interchangeably with other terms such as risk capital, patient capital or equity financing. Visit the web site: http://www.acoa.ca/e/financial/venture_capital.shtml.

For more information, please contact:
 Canada Business - Nova Scotia
1575 Brunswick Street
Halifax, Nova Scotia  B3J 2G1
Telephone: 902-426-8604
Fax: 902-426-6530
Toll-free (information): 1-888-576-4444
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: cbns@canadabusiness.ca
Web site: http://www.bsc-sec.ca/ns



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