The government says it will provide guarantees of up to 90 per cent, up from a previous high of 75 per cent.
The province says it will also double the total amount of money available in the program from $25 million to $50 million.
Credit unions administer the program and provide loans to small businesses and social enterprises, while the province partners with the Nova Scotia Co-operative Council to provide the guarantee.
Over the past 10 years, credit unions have approved loans worth $56 million to about 1,200 small businesses.
The government says 95 per cent of the loans have been repaid in full.