CEED is a provider of the Atlantic Canada Opportunities Agency (ACOA) Regional Relief and Recovery Fund (RRRF) for “main street businesses” called The Urban Main Street Loan Initiative (UMSLI)
This loan is to be used to finance the everyday operations of a business such as sales and marketing, product development, wages and other activities for businesses such as retail shops, restaurants, corner stores, etc., and businesses of strategic importance to the community.
CLICK HERE TO APPLY (Note that the field name Startup refers to your COMPANY NAME)
All Inquiries Please email UMSLI@ceed.ca (NO PHONE CALLS PLEASE)
- Maximum loan of $40,000
- 0% interest until December 31, 2022;
- No principal payments until December 31, 2022;
- Principal repayments can be voluntarily made at any time without penalty;
- 25% up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is paid back by December 31, 2022;
- If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan effective January 1, 2023; and,
- The full balance must be repaid no later than December 31, 2025.
An Applicant deemed eligible for a Loan funded by the UMSLI must meet the following criteria:
(a) must be an SME or Social Enterprise
SME is defined as a small and medium-sized enterprise, which is defined as having less than 500 employees and annual sales revenues of less than $20 million, with products goods and services for the market economy, regardless of their business structure (e.g. sole proprietorship, partnerships, for profit or non-profit corporations, cooperatives.)
Social Enterprise is defined as any business producing goods and services for the market economy, but manage their operations and redirect their surpluses in pursuit of social, environmental, and community goals. Typically, Social Enterprises grow out of community economic development strategies involving citizens, government, the voluntary sector, business learning institutions and other partners.
(b) must have been a viable business or enterprise carrying on business and, where appropriate, registered in Nova Scotia on or before March 1, 2020;
(c) must be operating, and where appropriate, duly registered to operate, within the urban territory of the Recipient;
(d) must have been adversely impacted as a result of the COVID-19 outbreak;
(e) must have had a payroll below $1.5 million in its 2019 fiscal year;
(f) must demonstrate through attestation that they have attempted to access other federal relief measures under Canada’s COVID-19 Economic Response Plan, such as the Canada Emergency Business Account (CEBA), the Wage Subsidy benefits, the Commercial Rent Assistance for small businesses among others, and were either ineligible or rejected; or accessed COVID-19 relief measures and continue to experience liquidity issues.
(g) must not receive a Loan for the same costs for which it has received or will receive other federal relief measures;
(h) must demonstrate that its business activities have a reasonable expectation of economic viability, as well as job creation and/or maintenance; however, applications should also be judged on the Applicant’s commitment and dedication to the business, as well as earning potential; and
(i) must demonstrate need and attest that the loan proceeds will be used for costs and/or working capital related to COVID-19.
(a) costs that will help to stabilize the Applicant to mitigate impacts of COVID-19 and that are not covered by other COVID-19 relief measures; including:
- rent (only eligible if the Canada Emergency Commercial Rental Assistance program is not accessed);
- rental or leasing of equipment and machinery;
- salaries and benefits (only eligible if business is not eligible for, or was rejected under, through the Canada Emergency Wage Subsidy (CEWS));
- property taxes;
- cleaning supplies;
- additional safety measures;
- bank interest/charges and loan repayment (interest);
- office supplies;
- vehicle operating expenses;
- professional fees;
- insurances; and,
- other fixed overhead costs and one-time stabilization expenditures
(b) costs have become due or have been incurred since March 15, 2020; and
(c) costs not otherwise deemed ineligible.
In calculating the amount of the Loan, only costs for which the Applicant has not received any other relief or assistance shall be considered. For example, if the Applicant has received a 75% subsidy under CEWS, the Loan cannot be used to cover the remaining 25%.
The following costs are deemed ineligible for a Loan funded under the UMSLI:
(a) costs related to refinancing of an existing debt;
(b) costs related to land acquisition;
(c) goodwill; and
(d) costs related to the purchase of any assets for more than the fair market value of the said asset.