BNB-Business Guaranteed Loan

This document is based on information from the Government of New Brunswick (Services) Web site, January 2008.

The purpose of the assistance is to provide adequate funding for capital expenditures and working capital to enable the establishment, expansion, or maintenance of those eligible industries.

Eligibility Criteria

A domestic or external business that can demonstrate the potential to offer growth and prosperity to the New Brunswick economy and that does not fall under the following sectors:

• Logging;
• Primary agriculture;
• Quarrying;
• Broadcasting;
• Transportation;
• Communications;
• Publishing of news periodicals;
• Generation of electricity;
• Retail trade;
• Food catering;
• Warehousing; and
• Provision of personal services.

Summary

A guarantee is offered, by the Province, to a lending institution for the repayment of a business's loan. 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.

A 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 guarantee will be required to demonstrate through submission of a comprehensive Business Plan, that their 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.

For additional information, call Business New Brunswick at 506-453-3313.

New Brunswick Contact(s):
Financial Programs
Business New Brunswick
Centennial Building
670 King Street
P.O. Box 6000
Fredericton, New Brunswick  E3B 5H1
Telephone: 506-453-3313
Fax: 506-453-7904