Friday, October 16, 2020
Government has announced the Tourism Sector Financing Assistance Program that will back loans taken by large tourism operators so they can receive better interest rates and more favourable terms at their bank of choice. The program will be administered by the Nova Scotia COVID-19 Response Council at Dalhousie University.
Larger tourism operators serve as anchors for the sector, drawing air travellers, cruise ships and visitors to Nova Scotia. The program will provide large operators access to lower-cost financing through a loan backstop. The $50 million program will assist the Nova Scotia tourism sector by providing eligible operators access to debt financing, such as lines of credit or term loans issued by a chartered bank or the Business Development Bank of Canada, at more favourable terms.
Eligible tourism businesses include resort, tour, and scenic and sightseeing transportation operators with at least 100 full-time and/or seasonal employees, annual revenue of at least $10 million and who have experienced revenue decline of at least 50 per cent for the period April 1 to July 30, 2020 compared to the same period last year.
This program fills a gap in federal programming for large businesses in Nova Scotia.
This is the second contribution to the NSCRC. The first $50 million announced in March supported businesses that closed as directed by Public Health orders and funded income replacement, impact grants and reopening support for small businesses, breakfast programs for kids, and supports for unemployed individuals who may not have qualified for the Canadian Emergency Response Benefit (CERB).
More information on program, eligibility and application form is available at https://novascotia.ca/coronavirus/tourism-sector-financing-assistance-program/