Effective immediately, a change to the Credit Union Regulations, 2009 allows credit unions and their clients throughout Newfoundland and Labrador to avail of financial support through a Government of Canada program announced last week in response to recent American tariffs.
Export Development Canada is increasing its financial support to eligible Canadian exporters in anticipation of heightened demand for its financing and insurance solutions, including loans, guarantees and working capital support. Through the Trade Investment Program, an additional $5 billion will be provided over the next two years to help eligible companies navigate the current economic situation.
Funding support for this program will be administered through financial institutions, including credit unions. The Provincial Government has made a change to the Credit Union Regulations, 2009 to enable credit unions and their members to participate in the newly announced program, or in potential future programs designed to mitigate financial disruptions for businesses.
Prior to this change, the Credit Union Regulations, 2009 restricted the availability of unsecured commercial loans in excess of $25,000, with an exception for the Canada Emergency Business Account (CEBA) program during the COVID-19 pandemic. As of today, the Regulations have been changed to allow credit unions and their members to avail of any relevant Federal or Provincial Government programs meant to alleviate financial hardship for businesses.
As these programs can only be accessed by businesses in response to financial hardship during periods of economic uncertainty, approval from the Credit Union Deposit Guarantee Corporation is required to receive funding through a credit union for a commercial loan program.
The Credit Union Deposit Guarantee Corporation is a provincial Crown Corporation responsible for the administration of the Credit Union Act, 2009 and Regulations and ensuring compliance and financial stability of credit unions in Newfoundland and Labrador. The credit union system in Newfoundland and Labrador is comprised of 6 credit unions with offices in 36 locations, approximately 61,000 members and employs approximately 320 people.
The Regulations are available in the Newfoundland and Labrador Gazette.
Quote
“We are in uncertain times, and the Provincial Government remains committed to supporting local businesses. To support Newfoundland and Labrador’s business community, who are rightly concerned about the impact of American tariffs on their operations, we want to ensure businesses here have full financial support to help them navigate through this challenging economic time. This change means credit unions can access support quicky and easily to meet the needs of their clients who want to avail of federal and provincial programs during this difficult economic period.”
Honourable Elvis Loveless
Minister of Digital Government and Service NL
-30-
Learn more
Credit Union Act, 2009 and Regulations
Credit Union Deposit Guarantee Corporation
Export Development Canada Trade Investment Program
Statement from the Premier in Response to U.S. Tariffs
Buy From Newfoundland and Labrador, Canada Campaign Targets New Export Markets
Buy From Newfoundland and Labrador, Canada
Follow us on X @GovNL and @DGS_GovNL
Follow us on Bluesky
Like us on Facebook