Forgivable Loan Application Feedback
Sprout sat down with one of our clients who was approved for the Nova Scotia Forgivable Loan Program to learn more about their experience.
How did you first hear about the Nova Scotia Forgivable Loan Program, and where did you go for more information?
We initially learned about the Nova Scotia Forgivable Loan Program from a provincial government announcement. We were already in the planning stages of a renovation to our main home, intending to include a secondary suite for my mother.
When we decided to pivot from renovating our home to building a backyard suite with the help of Sprout, they reminded us to apply for the forgivable loan. So, we took a deeper dive into the program details and eligibility criteria by visiting the provincial government’s website. There were two streams for the program, and we met the eligibility for the Supportive Housing Stream, which was perfect for our situation.
How did you find the process of applying for the provincial forgivable loan program for your backyard suite?
The application process was fairly straightforward, but it did require some preparation. You need to gather supporting documents, including estimates that show the overall cost of the project, building plans, the building permit, and a lease agreement with my mother which is only required for the Supportive Housing Stream, as it requires proof that the suite will be used to support someone over 65, like my mother. Additionally, we had to provide her ID to confirm her age, proof of financing, which could be a statement or a letter from our financial institution, and evidence that our property taxes were up to date.
What were some of the challenges you faced during the application process?
Since we were among the first people to apply, there were originally some challenges. The program was brand new and in the pilot phase, so it was a bit confusing at times. Initially, the requirements were quite strict, especially when it came to proof of cost. They were asking for two quotes for the same work, which was tough because we had already signed a contract with Sprout. Getting another quote for our agreed upon plans was nearly impossible at that stage.
To meet this requirement, we ended up showing them the quote for the renovation to our primary home’s secondary suite as a comparison, and fortunately, they accepted that. They have since relaxed these initial estimate requirements. Now, while they suggest getting three quotes for construction, it's no longer a requirement for eligibility. This change has likely made the process smoother for new applicants.
What did you have to do once the construction of your backyard suite was complete?
Once the project was finished, we just had to send in the final invoices and the occupancy certificate. Working with a turnkey builder like Sprout made this very straightforward for us. There was no need to wrangle an Excel spreadsheet filled with numbers, or submit piles of receipts. We simply had to submit our two invoices.
Additionally, we signed a Promissory Note and Operating Agreement, which explained the terms for the loan forgiveness. It was all clearly laid out. We’re really grateful for how everything turned out, and having the forgivable loan made it much more financially feasible for us to provide a comfortable living space for my mother.
What advice would you give to someone considering applying for this loan program?
My advice would be: just go for it! Don’t be put off by the paperwork. Although it may seem daunting at first, the process is actually quite simple once you get started. We had a great representative at the government level who was really helpful. One of the most pleasant surprises was that during our project, the value of the loan increased from $25,000 to $40,000. We didn’t even have to ask for the increase; our representative reached out to us and automatically adjusted the forgivable loan amount. It was a nice bonus and showed that they were really committed to supporting this initiative.
You can find more information and resources for the Nova Scotia Forgivable Loan Program on their official website.