Government of New Brunswick
  • Description
  • Fees
  • Contacts
  • Overview

    The purpose of the assistance is to provide adequate funding for capital expenditures and working capital to enable the establishment, expansion, or maintenance of eligible industries. The assistance may be provided in the form of a loan guarantee or direct loan.


    - Eligible industries include manufacturing and processing companies, selected commercial service firms (business to business with focus on export activity or import displacement), full-time tourism operations (consistent with the tourism strategy), and information technology companies (consistent with the information technology strategy).
    - The operation must be located in New Brunswick.
    - Applicant must be able to provide a satisfactory level of equity.
    - Applicant must have attempted to obtain the required financing from conventional sources such as banks or financial institutions.
    - Applicant must be able to provide adequate security, normally in the form of a first fixed charge on real property, machinery and equipment or an assignment of inventory and accounts receivable.


    A direct loan or loan guarantee can benefit a business seeking to start-up operations in New Brunswick or expand an existing facility by enabling it to increase its borrowing capacity. Applicants seeking a loan will be required to demonstrate through submission of a comprehensive Business Plan, that the project is viable, will contribute to the economic growth of New Brunswick and that the company has the financial capacity to repay its loan according to the Terms and Conditions and within the prescribed time period. Additionally, the applicant will be required to demonstrate that the required funding would not otherwise be available on reasonable terms and conditions.

    A guarantee is made on a loan or a portion of a loan that is made to a business by a financial institution. The lending institution administers the loan and holds the security. Loan guarantees may generally be used for purposes of increasing working capital borrowing ability, but may also be used to secure term debt for working capital or capital expansion purposes.


    Unless otherwise specified, Fees exclude the harmonized sales tax (HST).

    Fee DescriptionRate in $Effective Date
    A service fee is prescribed in an amount equal to one and one half percent of the principal amount of a guarantee, a guaranteed loan or a guaranteed bond issue outstanding on the date of issue of such guarantee, loan or bond issue and on the decreasing balance of such loan, guarantee or bond issue to be calculated on each annual anniversary of the date of issue thereof. Rate is 1.5%2012-02-14
    Contact Email Location