Government of New Brunswick

Overview

The Agricultural Development Board can provide loan guarantees to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantees are typically for up to a maximum of 80% of line of credit, and usually for a period of up to 3 years.

Eligibility

The business plan must show reasonable chances of viability and must demonstrate that a demand exists for the product(s);

The applicant must have acceptable agricultural knowledge and business skills, and an acceptable credit history;

The project must fit with the province’s sector strategies (in terms of impact on agricultural land, jobs, export sales, markets, etc.);

Acceptable security must be provided for the proposed financing; and

The applicant must show an acceptable amount of equity in the business.

Description

This program provides a guarantee, to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantee is typically for up to a maximum of 80% of line of credit, and usually for a period of up to 3 years.

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

Contact Information Email Location
Fredericton