Business Development Program - Business Start-ups / Expansions and Modernizations

The Business Development Program (BDP) aims at supporting Atlantic Canadian small and medium enterprises (SMEs) and those who wish to establish in Atlantic Canada.

Unsecured, interest-free contributions can help cover up to 50% of the eligible start-up, working capital and capital costs of a new establishment, modernization or expansion project. Related operational costs for activities such as training, studies, marketing, productivity improvement or quality assurance may be eligible for up to 75% financing. All contributions are repayable on a schedule tailored to your circumstances.

Eligibility Criteria

Eligible applicants include commercial enterprises and not-for-profit organizations, including Aboriginal business and social enterprises.

Eligible sectors include, but are not limited to, manufacturing and processing, service to business, tourism and information technology. 

Ineligible sectors include retail/wholesale, real estate, government services, and services of a personal or social nature.

Summary

What costs are eligible?

Buildings:
The cost of acquiring, constructing or expanding buildings necessary for an eligible project is acceptable. Also eligible are the costs associated with related structures such as wharf facilities, on-site cafeterias and buildings to store raw materials, finished goods and other authorized operations.

Leasehold improvements on leased premises are also eligible costs if they are required for the approved project.

Machinery and equipment:
The cost of purchasing machinery and equipment directly related to the authorized project is eligible. Other equipment not directly related but necessary for the project may be acceptable, for example: pollution control equipment; power generating equipment; computer equipment including software; and basic stock spare parts for continuous operation of certain machinery.

Leased equipment and conditional sales contracts:
Assets acquired under capital leases may be considered eligible. The eligible cost of the leased asset must not exceed the value which would have been placed on it if the equipment were purchased outright.

Site improvements:
Costs for such things as land clearing, paving, sidewalks, rail beds and signs are eligible for financing when these are an integral part of approved project.

Infrastructure:
Costs for private roads, sewers and water treatment plants required for the establishment, modernization or expansion of a facility may be eligible for financial assistance.

Intangible assets:
Patents, trademarks and licenses may be eligible for financial assistance.

Self-built assets:
In some instances, the approved costs of self-built assets, including material and direct labour costs and fringe benefits, may be eligible.

Product development costs:
Costs incurred in designing new or improved devices, processes and services may be eligible for financial assistance.

Start-up costs:
Interest capitalized during construction, insurance during construction, operation of equipment for adjustment and calibration and other organization costs such as incorporation fees and legal fees may be eligible.

Working capital:
May be considered eligible for establishment or expansion projects.

New Brunswick Contact(s):
ACOA New Brunswick
Atlantic Canada Opportunities Agency
570 Queen Street
P.O. Box 578
Fredericton, New Brunswick  E3B 5A6
Telephone: (506) 452-3184
Fax: (506) 452-3285
Toll-free (information): 1-800-561-4030
Web site: http://www.acoa.gc.ca/e/