A new operating loan program is being introduced to help municipalities with financial losses due to COVID-19.
The $380 million loan program, which was developed in collaboration with the Nova Scotia Federation of Municipalities and the Association of Municipal Administrators, will be available through the Municipal Finance Corporation.
“During this unprecedented time, municipalities need support to address the financial issues they are facing as a result of lost revenue,” said Municipal Affairs and Housing Minister Chuck Porter. “This program will help to bridge that gap so they can continue to deliver programs and services to Nova Scotians.”
Municipalities interested in accessing a loan will first need to determine their revenue shortfall. Municipal councils will be required to pass a resolution and submit it to the Department of Municipal Affairs and Housing. The department will analyze requests and if approved will forward the approval to the Nova Scotia Municipal Finance Corporation. Upon approval by the corporation’s board of directors it will administer a loan agreement.
Nova Scotia municipalities are struggling right now as a result of fallout from COVID-19 with lost revenue, coupled with the inability to run a deficit. This funding option will allow municipalities to continue to provide vital services to our businesses and residents. This is a good first step as municipalities still face much uncertainty due to the ongoing financial uncertainty related to the pandemic.
Pam Mood, president, Nova Scotia Federation of Municipalities
- municipalities will have six months to begin repayment and three years to fully repay the loan
- funds will be disbursed to municipalities by the Nova Scotia Municipal Finance Corporation within 24 hours of the agreement being signed
Nova Scotia Municipal Finance Corporation: https://www.nsmfc.ca/documents.html
Department of Municipal Affairs and Housing Twitter: https://twitter.com/dma_ns