NB Growth Program
Economic Development
Overview
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.
Eligibility
Eligible businesses are those private sector businesses as listed below:
• manufacturing and processing industries
• information technology related 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 Culture, Tourism and Healthy Living (if seasonal, such businesses must operate full time throughout an annual operating season of not less than 90 consecutive days)
• commercial (i.e. business to business) service sector firms which are primarily engaged in export oriented or import replacement activity
• cultural enterprises, which for the purposes of this program are defined as film and video production, performing arts businesses, music and sound recording and production services, book and periodical publishing (excluding the publication of news periodicals), and craft production.
To be eligible, businesses must:
• propose to operate on a full-time year-round basis (with the exception of seasonal tourism businesses which must operate full-time throughout an annual operating season of not less than 90 consecutive days)
• be ready to undertake commercial operations or be at an advanced stage of development
• be establishing, expanding, diversifying, or improving competitiveness with eligible capital costs of less than $500,000 (In addition, the most recent annual sales levels of existing businesses undertaking expansion, diversification or competitiveness projects must be less than $5,000,000.)
Eligible Costs
• Eligible capital costs must be not less than $5,000 and not more than $500,000. Eligible capital costs are initial “one-time” licensing/franchise fees and capital 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. Note that the portion of any annual salary in excess of $30,000 is ineligible for consideration, and therefore the maximum salary-based assistance level is $15,000 per “year-round” position for start-up projects and $9,000 per “year-round” position for expansion/ diversification projects. For eligible seasonal tourism operations, the position must provide at least 90 consecutive days of full-time employment and provide a monthly gross salary of at least $1,600. For such positions, the portion of the monthly salary in excess of $2,500 is ineligible for consideration. For all other eligible businesses, the position must provide at least 365 consecutive days of permanent employment and an annual gross salary of at least $20,000.
Description
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 50% of eligible costs, up to a maximum of $15,000 per new full-time year-round job created. As well, non-repayable contributions of up to $50,000 can be made relating to establishment of seasonal tourism businesses, based on 50% of the eligible costs.
• 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. As well, non-repayable contributions of up to $30,000 can be made relating to the expansion, diversification or improving the productivity or competiveness of seasonal tourism businesses, based on 30% of eligible costs.
Equity Requirements
• 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.
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Fredericton
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