HALIFAX – The Nova Scotia government claims it has guaranteed nearly $ 35 million in loans to major tourism companies in the province grappling with the COVID-19 pandemic.

HALIFAX – The Nova Scotia government claims it has guaranteed nearly $ 35 million in loans to major tourism companies in the province grappling with the COVID-19 pandemic.

The Tourism Sector Funding Support Program, announced last October, gives eligible resort and tour operators access to low-cost debt financing such as lines of credit or term loans issued by a chartered bank.

The province says Ambassatours Gray Line and Murphy’s on the Water can access up to $ 11 million under the program, and Cabot Links up to $ 14.25 million and Coach Atlantic up to $ 9.5 million Dollars can get.

In a press release, Minister for Inclusive Economic Growth Labi Kousoulis says the program fills a void because the larger operators were not eligible for government aid programs.

Eligible companies must have annual sales of at least $ 10 million, employ at least 100 people, and experience a 50 percent decrease in revenue between April 1 and July 30, 2020 compared to the same period last year.

The Nova Scotia COVID-19 Response Council fund guarantees up to 95 percent of the amount borrowed, and the interest rate cannot exceed the prime rate plus 1.5 percent.

Dennis Campbell, chairman of the board of directors of Ambassatours Gray Line and Murphy’s on the Water, said in Monday’s news release that the loan financing would mean “no cost” to taxpayers and “significant benefits over time”.

“I am ready to bet on my career and reputation that this program won’t cost taxpayers a dollar as the companies selected were strong prior to COVID and have been carefully vetted by (Nova Scotia COVID-19 Response Council) and our banks” said Campbell said.

This Canadian press report was first published on April 19, 2021.

The Canadian press

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