More details have been released on the province’s Forestry Contractor Financing Program announced last week.
In a release, the province outlined the requirements contractors had to meet in order to receive temporary financing assistance to help pay for equipment while they look for new clients and deal with the transitioning industry.
Eligible contractors include those who’ve engaged in commercial forestry harvesting and trucking during the past 12 months and have external financing arrangements for one of eight types of equipment.
The program will be available through 16 credit unions across the province that also offer the Small Business Loan Guarantee Program, a separate program
Premier Stephen McNeil says the programs is meant to help the sector transition after the closure of Northern Pulp, a decision that has already created waves throughout the industry.
He says “We are monitoring, listening and working hard to respond to needs of forestry workers and businesses as they look for new customers and adjust to the changing dynamics in the sector.”
Qualifying contractors can access a line of credit worth up to three months of payments to a maximum of $180,000, which will convert into a loan within two years.
Those loans will carry a five year term from the date of the original credit being given, with an option for renewal for an additional five years, at the discretion of the credit union.
The program will be available for applications at the participating credit unions until June 30, 2020.
