Loan Guarantee

CBDC First-Time Entrepreneur Loan

Amount:

$150,000.00

Type of Program:

Investment, Loan, Loan Guarantee

Description:

The CBDC First-Time Entrepreneur Loan provides financing of up to $150,000 to new entrepreneurs who live in a rural community in Atlantic Canada.

Comments on Funding:

Funding is up to $150,000 per eligible borrower.
The loans are repayable and have competitive interest rates and repayment terms. Financing may be term or demand loans, a loan guarantees, or equity investments.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant:

must be a new, first-time entrepreneur living in a rural area of Atlantic Canada
must be a sole proprietor, a limited company or partnership (majority control must reside with the new entrepreneur),
may be a seasonal and year-round business,
may use the loan for a business start-up, or to help buy an existing business, or for a variety of purposes: Startup costs, fixed assets, working capital, buildings and land, furniture and fixtures, machinery or other types of equipment, and possibly vehicles used strictly for business operations. Franchise purchases and Leasehold improvements are also eligible.

Application Steps:

Applicants must contact the CBDC personnel for further details.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Programs and services delivered by CBDCs may vary by region.

Program Contact:

Business Startup & New Entrepreneur Loans in NB, NL, NS & PEI

Industry Development Programs: Livestock Incentive Loan Program

Amount:

$75,000.00

Type of Program:

Loan & Loan Guarantee

Description:

The Livestock Incentive Loan Program provides loans to financial institutions for New Brunswick farmers purchasing and raising livestock. It also provides guarantees to financial institutions for approved livestock purchases.

Comments on Funding:

Funding takes the form of loans of up to $75,000.
The program guarantees up to 90% of loan, at lenders’ prime interest rate + 1%. The term of the guarantee will be up to 18 months for the purchase of feeder livestock and up to 7 years for the purchase of breeding livestock.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a full-time or a part-time New Brunswick farmer organized as a sole proprietorship, a partnership, an incorporated company or to be incorporated, or a cooperative,
have acceptable agricultural knowledge and business skills, and an acceptable credit history,
invest at least 10% equity in the project,
provide acceptable security for the proposed financing,
have a business plan that shows reasonable chances of viability and that demonstrates that a demand exists for the product(s),
work on a project that fits with the province’s sector strategies (in terms of impact on agricultural land, jobs, export sales, markets, etc.).

Application Steps:

No specific steps have been identified.

Documentation Needed:

Applicants must submit:

a completed application form,
a business plan.

Other Things to Note:

No other details available.

Program Contact:

Livestock Incentive Loan Program

FISHERIES DEVELOPMENT BOARD

Industry Development Programs: Agriculture Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan Guarantee

Description:

The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides loan guarantees to promote development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan guarantee must first seek financing from a private lender.

Comments on Funding:

There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seek financing from a private lender,
use the financing for:

purchasing an existing farm,
starting a new farm,
purchasing shares in a farming operation,
purchasing land for farming,
developing land for farming,
working capital requirements,

invest, or have invested, a minimum 10% (new entrants 5%) equity into the project,
provide acceptable security for the proposed financing,
have a business plan.

Application Steps:

No specific steps have been identified.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Other Things to Note:

No other details available.

Program Contact:

Agriculture Loan Guarantees

FISHERIES DEVELOPMENT BOARD

Fisheries Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan Guarantee

Description:

The Fisheries Loan Guarantees provides loan guarantees to New Brunswick fishers and sea farmers for the purchase of fishing licenses, quotas, engines or equipment related to fisheries, new or used vessels or for making major repairs to the hull or engine of a vessel. The program is designed to share the financial risk with financial institutions.

Comments on Funding:

There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year. Repayment terms are matched to the cash flow of the project as supported by the business plan. Options include interest only payments or principal and interest payments.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seeked financing from a private lender,
use the financing for:

the purchase of a new or used vessel,
the purchase of an engine or equipment related to fisheries,
making major repairs to the hull or engine of a vessel,
the purchase of a commercial fishing license or obtain a quota,

invest, or have invested, a minimum 10% (new entrants 5%) equity into the project,
provide acceptable security for the proposed financing,
have a business plan.

Application Steps:

No specific steps have been identified.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Other Things to Note:

No other details available.

Program Contact:

Fisheries Loan Guarantees

FISHERIES DEVELOPMENT BOARD

Aquaculture Loans and Loan Guarantees

Amount:

No Fixed Amount

Type of Program:

Loan & Loan Guarantee

Description:

The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans and loan guarantees to promote development of the aquaculture sector as a complementary lender. DAAF will work with other lenders to facilitate succession and new development of viable projects, such as: purchasing of new or used vessels, undertaking activities related to aquaculture, purchasing an engine or equipment related to aquaculture, or making major repairs to the hull or engine of a vessel.

Comments on Funding:

The financial assistance comes as a direct loan or a loan guarantee.
There is a loan guarantee fee of 1.5 % of the amount guaranteed, paid at the beginning of each year.
The applicant must demonstrate a minimum 10% (new entrants 5%) equity into the project. The department may require a higher equity level based on the risk of the project.

New entrants, defined as someone who has owned a farm for five years or less, may be eligible for lower interest rates and equity requirements.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a sole proprietorship, a partnership, an incorporated company or to be incorporated, a cooperative from New Brunswick, or a new entrant (defined as someone who has owned a farm for five years or less),
have first seek financing from a private lender,
use the financing for:

purchasing a new or used vessel,
undertaking activities related to aquaculture,
purchasing an engine or equipment related to aquaculture,
making major repairs to the hull or engine of a vessel.

invest, or have invested, a minimum 10% (new entrants 5%) equity in the business,
provide acceptable security for the proposed financing,
have a business plan.

Application Steps:

No specific steps have been identified.

Documentation Needed:

Applicants must submit:

1
a completed application form,
2
a business plan which includes:

a description of business and project,
financial information (minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation)),
a description of management plan,
a marketing plan,
productions details.

Other Things to Note:

No other details available.

Program Contact:

Aquaculture Loans and Loan Guarantees

FISHERIES DEVELOPMENT BOARD