Forestry companies can better develop and adapt their businesses with easier access to financing. This has been a common theme delivered by the sector and that is why government has developed an improved lending program for forestry companies.
The Nova Scotia Timber Loan Board now has improved lending terms, eligibility and a revised fee structure. The latest regulatory improvements are modelled on recent amendments to the regulations governing the Farm and Fisheries and Aquaculture Loan Boards and address needs experienced most acutely by small and medium sized enterprises central to the forestry sector.
“We have worked hard to modernize the province’s lending boards for our key economic sectors and we’re pleased to extend the same to the forestry sector,” said Keith Colwell, Minister of Agriculture and Fisheries and Aquaculture. “Now, the Timber Loan Board can provide services to help develop and innovate our forestry sector when it is needed most.”
The Timber Loan Board can provide businesses with access to financing for buildings and equipment, developing business cases, upgrading facilities and land purchases at market interest rates.
Loans are administered by the Department of Agriculture’s Crown Lending Agency that also supports the Nova Scotia Farm Loan Board and the Fisheries and Aquaculture Loan Board. The regulatory changes provide uniformity among the three boards under the same operational structure and standardized service fees.
The Forestry Transition Team has endorsed this plan.
- the Timber Loan Board has existed for more than 55 years to provide access to capital for the forest industry and rural business development through flexible lending programs
- the current regulations had not been updated since 1984
- Nova Scotia’s Farm Loan Board and the Fisheries and Aquaculture Loan Board regulations were substantially updated in 2018
- since January, the Forestry Transition Team has endorsed spending of about $75 million in new training and funding initiatives as well as program adjustments involving various government departments and agencies. This includes the $50 million Forestry Innovation Transition Trust.