Frequently Asked Questions
What does LIFT offer?
LIFT supports people who are thinking about starting a business in Lunenburg County, or who already have a small business and need some funding to grow. We offer microloans of up to $10,000, and free business coaching to help clients succeed.
I am thinking about a business idea, but I don’t know if it will work. Can LIFT help?
Absolutely! The first step is to give us a call so we can chat about your idea. From there, we may recommend a free program like MashUp Labs or the provincial Self Employment Benefit to help you define your idea and its potential. Or we may talk about other ways to test your idea and get the information you need to move ahead with confidence.
How do I know if I need a loan?
First, make what we call a “Shopping List”. Write down all the things you would need to get your idea started on a fairly small scale. Then, do some research to find out what each of these things costs, and write a price next to each item. Look at the total and ask if you truly need each item or service – could you do without it? Share it with someone else? Buy a used one? Start with some things now and leave the others for later? If your revised total is still more money than you currently have available, you will probably need a loan. If you are not sure what to put on your list, give us a call and we will help you figure it out.
I don’t need a loan. Can I just get advice?
Yes. We offer a free conversation of up to one hour to help define your needs, develop next steps, or discuss a specific question.
Where is your office?
LIFT does not have a physical office. We meet with you at your business location or at a public place in your area (a library, a coffee shop, the LCLC, the Mahone Bay Centre, wherever you are most comfortable).
How much is the interest rate?
The interest rate is currently set at 3% for any loans made during 2023. There is no application fee.
How long do I have to pay the loan back?
There are two options, and the choice is yours: either 12 monthly payments, or 24 monthly payments, automatically withdrawn on the last day of the month. There is a three-month grace period after you receive the loan funds before your first payment is due. As an example, on a $10,000 loan paid back over 24 months the monthly payment would be $429.63 and the total interest $311.19. You are always welcome to pay more and pay the loan off early.
What happens after I apply?
As soon as we receive your loan application, we match you with a volunteer advisor and we set up a time and place for an initial in-person meeting with you, the advisor, and the Success Agent (Evelyn). Our goal is to respond within 24 hours. If you do not get a response in that time frame, please email [email protected] to follow up. The initial meeting is basically a chance for us to get to know each other, where you can explain more about your business idea and ask any questions you might have.
How does LIFT evaluate applications?
The application form is designed to help you think through the key parts of a successful business: your product or service, price (the financial part), placement (who your customers are and how you are going to reach them) and people (your background and experience).
We look for passion, perseverance, a clearly defined idea, evidence that there is a demand for that idea, a plan to connect with customers, and evidence that the business can make enough money to be your main source of income. Since LIFT operates as a charity, we also consider how the business will benefit the community.
Our goal is to say “yes” and help you succeed, so if any of these areas are not fully developed we may work with you to get more information. We will also help you develop a cash flow forecast, which is a picture of how your business might do financially over its first year.
We look for passion, perseverance, a clearly defined idea, evidence that there is a demand for that idea, a plan to connect with customers, and evidence that the business can make enough money to be your main source of income. Since LIFT operates as a charity, we also consider how the business will benefit the community.
Our goal is to say “yes” and help you succeed, so if any of these areas are not fully developed we may work with you to get more information. We will also help you develop a cash flow forecast, which is a picture of how your business might do financially over its first year.
How soon can I get the money?
Loan funds are dispersed on the 15th and the 30th of every month. If your idea is already clear and fully developed and your cash flow forecast is positive, this process can take as little as a week from application date to funds transfer. If we have questions or there is missing information, it may take six weeks or more.
Are there any other requirements?
Loan recipients are required to meet with an advisor for coaching over the life of the loan, following a coaching plan developed to suit the unique needs of your business. Clients are expected to develop a habit of reflecting on their progress once a month by filling in and submitting a one-page monthly questionnaire.
I think I need more than $10,000. Where else can I go?
Other potential loan sources include:
- Your bank or credit union (either a loan or a line of credit)
- Futurpreneur | Entrepreneur Startup Program | Canada - Futurpreneur Canada (for people age 18-39)
- FarmWorks (for restaurant, food manufacturing or farm related businesses)
- Nova Scotia Farm Loan Board (nsfarmloan.ca) (farm related businesses)
- Small Business Development Assistance in Nova Scotia | CBDC (any applicant, any business type)
