Short-Term Financing

The MFA provides short-term financing under various pieces of legislation to help local governments with their cash flow needs. We offer several types of loans depending on what type of local government you are. Funds can be accessed at any time of year, once the appropriate documentation has been submitted, your loan has been approved and you have submitted an executed loan agreement and promissory note. The time required before a loan is approved or an advance can take place is dependent on what type of loan you are applying for, as some loans require more detailed analysis before they can be approved.

Please note that short-term loans are non-revolving. This means that the sum of all drawdowns may not exceed the amount of borrowing authorized, by bylaw or resolution. You may submit multiple drawdowns (up to the maximum amount of borrowing authorized), but if you draw down and subsequently repay the loan, you do not regain access to the full authorized amount of borrowing.

Short-term loans are direct obligations of the local government requesting the funding. In the case of a municipality, it does not have to seek consent of its regional district to participate in short-term borrowing (consent is required for long-term borrowing).

There are no fees to set up a short-term loan.  Interest is calculated daily, compounded monthly and automatically collected on the second business day of the following month. Payments of principal may be made by submitting a completed One Off Electronic Fund Transfer Form (found in the Client Portal). It is strongly suggested that any short-term capital borrowing (CC 178/LGA 405) or liabilities under agreement (CC 175/LGA 403) loans have an associated annual principal payment. This may be mandatory, in future. Each loan has a detailed monthly statement, which clients may access at any time, by logging into their account on the client access site.

The MFA raises money weekly in the Commercial Paper market to fund short-term loan requests. This allows our members access to low cost funding and the flexibility to borrow and repay on short notice.  Funds can be accessed on the same day for amounts less than $5 million (provided notice is given prior to 10:30 a.m.). For amounts between $5 million and $10 million, please allow three days notice, and for amounts in excess of $10 million five business days’ notice is required. Short-term loans can be repaid at any time without penalty.

How To Apply For a Short-Term Loan

For bylaw and resolution templates, please see our Processes & Templates section.  The Ministry of Municipal Affairs has reviewed all sample municipal and regional district bylaws that are provided on our website. Questions regarding the construction and wording of bylaws can be directed to your Governance Analyst at the Ministry ( 

Once you have the proper bylaw or resolution in place, select the appropriate Short-Term Loan Application (found in the Client Portal). Complete the application and prepare all required supporting information, for the loan type you are requesting. Submit the completed application package, by email.

If the loan is approved, you will receive a Loan Agreement and Promissory Note via email.  Once the documents have been executed and returned, you may access funding by emailing a completed Request for Advance (found in the Client Portal). 

Anything you're not sure of? Check out our Frequently Asked Questions or email us.

Please note that the Equipment Financing program has different requirements and a separate application process. Please see the Equipment Financing program page for details.

Short-Term Loan Applications

Please be advised that forms related to Short Term Financing are available in the Client Portal.

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