NB Growth Program
The objectives of the NB Growth Program (NBGP) are to create sustainable employment opportunities in New Brunswick by financially stimulating small businesses to pursue opportunities within targeted sectors of the economy and to stimulate capital investment for small business start-up, expansion, diversification, innovation, and productivity improvement.
Eligible businesses are those private sector businesses as listed below:
• Businesses belonging to one of the six Priority Growth Sectors:
- Information and Communications Technology (ICT)
- Industrial Fabrication
- Aerospace & Defense
- Value-added Wood
- Value-added Food
• Manufacturing and processing industries.
• Full-time tourism activity/service operations offering services and/or activities specifically targeted at the tourism market which are consistent with the objectives of the Department of Tourism Heritage and Culture (if seasonal, such businesses must operate full time throughout an annual operating season of not less than 90 consecutive days).
To be eligible, businesses must:
• Propose to operate on a full-time year-round basis (with the exception of seasonal tourism businesses)
• Be ready to undertake commercial operations or be at an advanced stage of development or
• Be establishing, expanding, diversifying, or improving competitiveness
• The most recent annual sales levels of existing businesses undertaking expansion, diversification or competitiveness projects must be less than an average of $7,000,000 over the business’ last three full years.
• Eligible capital costs must be not less than $10,000.
• Eligible capital costs are costs associated with the establishment or expansion/diversification of those eligible businesses or related to improving the productivity or competitiveness of those businesses.
Eligible capital costs exclude the purchase of land, motorized vehicles licensed for highway use, goodwill, contributed assets, or the portion of the cost of any asset that exceeds fair market value or relates to ineligible activities.
• Eligible salary costs are the initial year gross salaries of full-time (i.e. 35 hrs/week) positions which are newly created by eligible businesses and which relate solely to the activities of an eligible business.
- For Start-ups: $15,000, for salaries of at least $30,000 per “year-round” position.
- For expansion: $9,000 for salaries of at least $30,000 per “year-round” position.
- Note that the portion of any annual salary in excess of $30,000 is ineligible for consideration.
- For all eligible businesses, the position must provide at least 365 consecutive days of permanent employment.
Levels and Types of Assistance:
• For establishment - non-repayable contributions of up to $100,000 can be made relating to the establishment of “year-round” eligible businesses based on 30% of eligible costs, up to a maximum of $15,000 per new full-time year-round job created.
• For expansion, diversification or productivity improvement - non-repayable contributions of up to $60,000 can be made relating to the expansion, diversification, or improvement in the productivity or competitiveness of “year-round” eligible businesses, based on 30% of eligible costs.
• New businesses: equity contributions must be equal to at least 20% of the total eligible costs of the proposed operation.
• Existing businesses: existing and new equity must be equal to at least 20% of the aggregate of both existing assets and proposed eligible costs.