.jpg)
The Saskatchewan NDP is putting out the details of a new start-up loan program as the provincial election campaign is set to kick off soon.
The program would provide a $40,000 loan for start-up companies in Saskatchewan, payable to the province with an interest rate of the government’s cost of capital, plus 1 per cent.
That loan can be forgiven up to 25 per cent, based on the applicant's repayment record.
Per the Sask. NDP, the program would be for:
- Purchase or improvement of land or buildings used for commercial purposes
- Purchase or improvement of new or used equipment
- Purchase of new or existing leasehold improvements, such as renovations to a leased property by a tenant
- Intangible assets and working capital costs.
Saskatchewan NDP leader Carla Beck says that the loan would help to encourage smaller businesses in the province.
"This is something that would encourage people to increase the number of small businesses in the province. Everywhere we go there are people that have great business ideas, who are just needing a little bit of injection of support for those small businesses."
Beck says that she has spoken with business organizations and feels that this loan could be a big help.
"There is a very real need for this type of injection for those small business owners who are sitting on an idea, perhaps looking to contribute to the local economy and create jobs. We've heard from business owners who have been through this startup process since we made the announcements, who have told us this would have made a huge difference."
Getting into the specifics of the program, Beck says that the program would be capped at $5 million. Any loans through the program would go through a standard acquisition process for the business owners.
If elected in the fall, Beck says this is something they'd get rolling right away.
"Over the four years, we'd be looking to encourage a whole host of new businesses in the province. Again, it's a way to say that we're betting on Saskatchewan. We're betting on Saskatchewan small business owners. We value the contributions that are made to the economy by small businesses and this is a way to lend them a hand up as they start their business in the province."
Beck says that they're hoping to support small businesses even further if elected into office this fall.