Operating Short Term Financing


A new operating loan program is being introduced to help municipalities address the loss of revenues resulting from COVID-19. The $380 million loan program, which was developed in collaboration with the Nova Scotia Federation of Municipalities and the Association of Municipal Administrators, will be available through the Municipal Financial Corporation (MFC).


• Municipalities requesting financing assistance must do so by March 31, 2021.

• Municipalities must decide on a repayment term of: 

  • 3 years
  • 5 years or
  • 7 years

• Once a decision on a repayment term has been made, it is final and can not be changed. 

• Municipalities shall repay one third of the principal amount of the Loan to the MFC on each anniversary date of the Loan.

• Interest shall be paid semi-annually, with the first semi-annual payment occurring six months from the date the loan

  was issued, with other semi-annual Interest payments occurring on the anniversary date of the loan and continuing until

  the date the loan is fully repaid.


• Provincial 3-year fixed term rate of 1.1% on 3 year loan terms.

• Provincial 5-year fixed term rate of 1.3% on 5 year loan terms.

• Provincial 7-year fixed term rate of 1.7% on 7 year loan terms.

Application process

• Municipalities interested in accessing a loan will first need to determine their revenue shortfall;

• Municipal councils will be required to pass a resolution and submit it to the Department of Municipal Affairs and


• Municipalities must submit a written request to the MFC; 

• The department will analyze requests and, if approved, will forward the approval to the MFC; and,

• Upon approval by the MFC's Board of Directors, the MFC will administer a loan agreement.


Short-term Operating Loan Policy

Click the following link to open the Operating Loan Letter Template


Operating Loan request should be sent to Bob Audoux at This email address is being protected from spambots. You need JavaScript enabled to view it. for processing.