BNB-New Brunswick Growth Program

This document is based on information from Business New Brunswick's Web site, February 2008.

The objectives of the program are:

• To create sustainable employment opportunities in New Brunswick by financially stimulating small businesses to pursue opportunities within targeted sectors of the economy.
• To stimulate capital investment for small business start-up, expansion, diversification, innovation, and productivity improvement.

Eligibility Criteria

Eligible Businesses
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 Tourism and Parks. 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; and
• be establishing, expanding, diversifying, or improving competitiveness with eligible capital costs of less than $300,000. In addition, the most recent annual sales levels of existing businesses undertaking expansion, diversification or competitiveness projects must be less than $2,000,000.

"Non-profit operations" are ineligible under the program. Businesses are ineligible for assistance under both the NBGP program and the department's Strategic Assistance fund for the same project.

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.
  • Intangible assets will be excluded in the calculation of equity requirements. Patents, trademarks, and intellectual property or intellectual property licenses are considered as tangible assets for the purposes of the program.
  • Contributed assets will only be included in the calculation of equity requirements at cost subject to verification by the department.

Eligible Costs
Eligible Costs consist of eligible capital costs and/or eligible salary costs as outlined below:

• Eligible capital costs must be not less than $5,000 and not more than $300,000. Eligible capital costs are initial "one-time" licensing/franchise fees and capital costs associated with the establishment or expansion/diversification of those Eligible Businesses as defined below 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.
   
  The total amount of assistance provided towards eligible capital and salary costs associated with establishment projects cannot exceed $100,000 for "year-round" projects or $50,000 for seasonal tourism projects. As well, the total amount of assistance provided towards eligible capital and salary costs associated with expansion/diversification/productivity projects cannot exceed $60,000 for "year-round" projects or $30,000 for seasonal tourism projects. All Eligible Costs must be of an "arms-length" nature.

Summary

Level and Type of Assistance
The assistance is in the form of a non-repayable contribution as outlined below.

• 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 as described under Eligible Businesses below, based on 50% of 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 improving 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 competitiveness of seasonal tourism businesses as described under Eligible Businesses below, based on 30% of Eligible Costs.

How Assistance is Disbursed
50% of capital cost-based assistance and 25% of wage-based assistance is advanced once the project starts and all conditions of the offer of assistance are satisfied.  Interim advances of capital cost-based assistance (as well as one interim advance of wage-based assistance) may be paid upon receipt of satisfactory evidence that sufficient Eligible Costs have been incurred and paid to justify previous and requested advances plus an amount equal to the required cash equity investment if applicable.  Final advances may be paid upon audit of the completed project by the department which verifies that the Eligible Business has started operation and has incurred and paid all Eligible Costs.  Payments in excess of allowable assistance must be refunded to the department immediately. Assistance towards cost overruns is not available under the program.
 
General

• Repeat applications will only be considered if received at least one year after final disbursement on the previous project. 
• Replacement of assets due to a fire is ineligible.
• Government owned or operated or non-commercial businesses are not eligible under this program. As well, from time to time, the department may make a determination as to eligibility or ineligibility of certain industries or industrial sectors under the program.
• No assistance is provided towards recurring franchise or licensing costs, towards research costs, towards expenditures considered to be of a recurring nature (such as routine maintenance, etc.), or for costs relating to public infrastructure.
• No assistance is provided relating to the purchase or continuation of an existing business.
• Members of the New Brunswick Legislative Assembly, Members of Parliament, Senators, Provincial civil servants (including employees of Crown Corporations), or businesses in which they are involved are ineligible under this program.
• Applications for assistance must be received while the project is in the planning stages, and before any formal commitments are made. No assistance will be provided towards any cost incurred prior to the date the application is received by the department.
• Applicants must complete an application form supported by a complete business plan and include attachments and information as requested.

Eligible Businesses must be able to demonstrate:

• eligibility;
• feasibility and viability;
• adequate raw material and markets to provide for operations without adversely affecting other firms;
• adequate financial resources to provide for forecasted working capital requirements;
• adequate financial management and financial reporting capability;
• that they are not at the "research" stage, but are at an advanced stage of development and have demonstrated the potential for commercial application;
• pollution abatement facilities which satisfy requirements of the New Brunswick Department of the Environment and other appropriate regulatory bodies; 
• satisfaction of equity requirements as outlined above; and,
• that the assistance will create a reasonable return on the province's investment in terms of new job creation, or increased sales or competitiveness.

To receive an application form or additional information about the NB Growth Program, call Business New Brunswick at 506-453-3890. Applications are also available at each of the 15 Enterprise Agencies, and staff at the agencies will assist companies with the application process.

New Brunswick Contact(s):
Business New Brunswick
Centennial Building
670 King Street
P. O. Box 6000
Fredericton, New Brunswick  E3B 5H1
Telephone: 506-453-3890
Fax: 506-444-4182

Enterprise Carleton Region
650 Main Street, Suite 4
Woodstock, New Brunswick  E7M 2G9
Telephone: 506-325-4488
Fax: 506-325-4489
E-mail: darcy.cummings@ent-carleton.ca
Web site: http://www.ent-carleton.ca

Enterprise Central N. B.
3662 Route 102
Islandview, New Brunswick  E3E 1G2
Telephone: 506-443-0333
Fax: 506-443-0343
E-mail: info@ent-centralnb.ca
Web site: http://www.ent-centralnb.ca

Enterprise Chaleur
275 Main Street, Unit 212A
Bathurst, New Brunswick  E2A 1A9
Telephone: 506-547-7445
Fax: 506-548-8271
E-mail: helene.landry-comeau@ent-chaleur.ca
Web site: http://www.entreprisechaleur.com/indexa.asp

Enterprise Charlotte
49 King Street, Unit 1
St. Andrews, New Brunswick  E5B 1X6
Telephone: 506-529-5518
Fax: 506-529-5261
E-mail: info@enterprisecharlotte.ca
Web site: http://www.ent-charlotte.ca

Enterprise Fredericton
570 Queen Street
Barker House
Fredericton, New Brunswick  E3B 6Z6
Telephone: 506-444-4686
Fax: 506-444-4649
Toll-free (information): 1-800-200-1180
E-mail: info@ent-fredericton.ca
Web site: http://www.enterprisefredericton.ca/

Enterprise Fundy
29 Milk Board Rd
Sussex, New Brunswick  E4E 5L2
Telephone: 506-432-2639
Fax: 506-432-2638
E-mail: joan.davidson@ent-fundy.ca
Web site: http://www.ent-fundy.ca

Enterprise Grand Falls Region
551 Main Street
Suite 200
P. O. Box 7304
Grand Falls, New Brunswick  E3Z 2W4
Telephone: 506-475-4330
Fax: 506-475-4336
E-mail: info@ent-grandfalls.ca
Web site: http://www.ent-grandsault.ca/section01_en.php?main=1

Enterprise Kent
59 Irving Boulevard
Suite 201
Bouctouche, New Brunswick  E4S 3J6
Telephone: 506-743-7337
Fax: 506-743-7342
E-mail: info@ent-kent.ca
Web site: http://www.ent-kent.ca/home.html

Enterprise Madawaska
121 de l'Église Street
Suite 407
Carrefour Assomption
Edmundston, New Brunswick  E3V 1J9
Telephone: 506-735-4769
Fax: 506-739-7486
E-mail: info@ent-madawaska.ca
Web site: http://entreprisemadawaska.com/index_en.php

Enterprise Miramichi
158 Wellington Street
Suite 201
Miramichi, New Brunswick  E1N 1L9
Telephone: 506-622-7890
Fax: 506-622-2160
E-mail: susan.crowder@ent-miramichi.ca
Web site: http://www.ent-miramichi.ca/

Enterprise Greater Moncton
910 Main Street
Suite 101
Moncton, New Brunswick  E1C 1G6
Telephone: 506-858-9550
Fax: 506-859-7791
Toll-free (information): 1-888-577-0000
E-mail: info@greatermoncton.org
Web site: http://www.greatermoncton.org/welcome.php

Enterprise Peninsula
439 Du Moulin Street
P. O. Box 3666, Main Station
Tracadie-Sheila, New Brunswick  E1X 1G5
Telephone: 506-395-2261
Fax: 506-395-5672
E-mail: info@ent-peninsule.ca
Web site: http://www.ent-peninsula.ca/

Enterprise Restigouche
Restigouche Business Centre
97 Roseberry Street
P. O. Box 825
Campbellton, New Brunswick  E3N 3H3
Telephone: 506-789-4939
Fax: 506-789-4933
E-mail: info@ent-restigouche.ca
Web site: http://www.restigouche.ca/En/index.cfm

Enterprise Saint John
Business Resource Centre
40 King Street
Saint John, New Brunswick  E2L 1G3
Telephone: 506-658-2877
Fax: 506-658-2872
Toll-free (information): 1-800-561-2877
E-mail: info@enterprisesj.com
Web site: http://www.enterprisesj.com/en/index.php

Enterprise South East
Centre Entrepreneurship Centre
337A Main Street
Shediac, New Brunswick  E4P 2B1
Telephone: 506-533-3390
Fax: 506-533-3393
E-mail: jocelyne.richard@ent-southeast.ca
Web site: http://www.enterprisesoutheast.ca/