Business New Brunswick

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Livestock Incentives Program

Type of Assistance:

• Loan Guarantee.

Term:

• 7 years or less.

Financing Rate:

Not more than prime lending rate + 1% and paid not less frequently than annually.

Repayment Terms:

The Province's liability is limited to 90% of the borrowed principle amount only. The Province will only guarantee the residual loss once the lender (Chartered Bank, Credit Union, or Caisse Populaire) has realized on and liquidated their security. Guarantee active until full payment to maximum of 7 years.

The first payment of principle is due two years after the date on which the loan was granted. (Only interest is paid in the initial year of loan). Further repayment annually.

Security Requirements:

Livestock Inventory plus a 10% equity contribution by the applicant.

Minimum Limits:

• $1,000

Maximum Limits: (amount of guarantee)

• $30,000 for an individual.
• $60,000 for a partnership, corporation cooperative consisting of 2 members.
• $90,000 for a partnership, corporation cooperative consisting of 3 members or more.

Eligible Items and Activities:

• Both full and part-time farmers.

• Purchase of cattle, sheep swine, foxes and mink for breeding purposes.
• Purchase of cattle, sheep and swine for feeding and slaughter purposes.

Non Eligible Items and Activities

• Capital costs.