Atlantic Canada Business Grants

Loan Guarantee

Nova Scotia Small Business Loan Guarantee Program

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Amount:

$500,000

Type of Program:

Loan Guarantee

Description:

The Small Business Loan Guarantee Program delivers better financial assistance for the start-up and expansion of small businesses in Nova Scotia by providing them loan guarantees.


Credit unions are the only financial provider to offer access to the financing program and they can provide financing up to $500,000 in the form of term loans, working capital and lines of credit . No other financing programs provide access to working capital or lines of credit to individuals who would like to start or purchase a small business and/or grow and expand an existing business.

Benefits of the NS Small Business Loan Guarantee Program:

  • Access to capital: The program provides financing up to $500,000 in the form of term loans, working capital and lines of credit. This can help small businesses with big ideas get the funding they need to start and grow their enterprise.
  • Lower interest rates: The program offers lower interest rates than traditional loans, which can help small businesses save money on interest payments.
  • Flexible repayment terms: The program offers flexible repayment terms, which can help small businesses manage their cash flow and repay the loan on their own terms.
  • No collateral required: The program does not require collateral, which can make it easier for small businesses to get the funding they need without putting up their assets as collateral.
  • Fast approval process: The program has a relatively fast approval process, which can help small businesses get the funding they need quickly and efficiently.

Comments on Funding:

Funding will take the form of a guaranteed loan or line of credit, subordinated debt, equity, revenue sharing or royalty agreement. A maximum investment of $500,000 will be granted to successful applicants, until the funds are all invested.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

Applicants must:

  • be start-ups and/or growth and expansions;
  • be not-for-profit, co-operatives or private businesses that have a positive impact on a social or environmental issue that meets a community need or maximize a community opportunity;
  • be registered and based in Nova Scotia;
  • be in good standing with the Canada Revenue Agency.

Application Steps:

1

Applicants must contact their local credit union branch for details.

Documentation Needed:

Applicants must submit a formal application.

Program Contact:

Small Business Loan Guarantee Program

Fisheries Loan Guarantee Program

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Amount:

$3,000,000

Type of Program:

Loan Guarantee

Description:

The Fisheries Loan Guarantee Program supports the development of the province's independent fish harvesting industry by providing a government guarantee on loans through local chartered banks for the construction or purchase of marine vessels and/or to purchase new engines and fishing equipment for the improvement, rebuilding or alteration of existing vessels. Loans may also be approved to refinance loans previously obtained from fish processors for fixed asset costs.

Comments on Funding:

The program offers loan guarantees for combining of enterprises up to $3 million; vessel-related items up to $2 million, and license acquisitions up to $1,5 million.
The Provincial Government’s guarantee can provide up to 100% of an outstanding loan.
Guaranteed loans are offered at the financial institution prime rate, as negotiated between the harvester and the lender, to a maximum of prime plus 2% or 2.5%, depending on the term of the loan.
10-15% down payment and adequate security are required. 

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • be entities, individuals or groups,
  • be a Canadian citizen/entity and a resident of Newfoundland and Labrador,
  • harvesters must be registered full time as certified by the Professional Fish Harvesters Certification Board and eligible to hold a commercial fishing license,
  • have a favorable credit record and demonstrate commercial viability, including the ability to repay the loan.

Application Steps:

1

Applicants must apply directly to the financial institution, which in turn will request the guarantee from the Provincial Government.

Documentation Needed:

Applicants must submit: 

  1. 1
    the Fisheries Loan Guarantee Application Form;
  2. 2
    previous and current years income and expense statements (income tax returns are acceptable);
  3. 3
    two years forecast of revenues and expenses;
  4. 4
    details of historical and forecast revenues according to: species, volumes and price; and
  5. 5
    a recent balance sheet detailing the businesses assets and liabilities, if incorporated.

Program Contact:

Fisheries Loan Guarantee Program

Fisheries Loan Guarantee Application

fisheries_loan_insert.pdf

CBDC First-Time Entrepreneur Loan

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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:

1

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

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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

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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. 1
    a completed application form,
  2. 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