Government of New Brunswick Small Business Emergency Working Capital Program
The Government of New Brunswick and Community Business Development Corporations (CBDCs) understand the difficulties the COVID-19 pandemic has caused businesses in our communities. As a result, the Government of New Brunswick has made funds available to the CBDC s to provide Small Business Emergency Working Capital to help provide relief for the impacts our communities are encountering as a result of this crisis.
Small business owners impacted by the COVID-19 pandemic can apply for working capital loans up to $100,000 through the Small Business Emergency Working Capital Program.
Examples of eligible small businesses include restaurants, seasonal tourism operators, service sectors, and self-employed business owners impacted directly by the pandemic.
Businesses will not be required to pay interest for the first six months. Interest payments will be required in months 7-12. Principal and interest payments will begin in month 13.
Small business owners should first (1) speak to their Financial Institution regarding options, (2) look for federal programs (3) and put cash flow projections together for 6 months to assess Working Capital needs.
General Details:
- For small businesses engaged in commercial enterprises employing 1 to 49 employees, with sales for the most recent fiscal year of less than $10 million.
- For businesses which have experienced adverse effects on or after March 15, 2020, as a result of the COVID-19 pandemic and have a reasonable plan or prospect to remain viable after the pandemic.
- Available to a corporation, proprietorship, partnership or joint venture or First Nation enterprise.
- The small business must be registered with Service NB and have its primary place of operations in New Brunswick.
- If the business is a corporation, the corporation must be in good standing as of January 1, 2020.
- Applicant must have been in good standing and current with their financial institutions, and government remittances prior to the COVID-19 crisis, and have no prior history of bankruptcy or default.
- Applicant must have explored options with their financial institution and federal support programs.
- Been viable and not experiencing liquidity or other financial difficulties as of March 15, 2020.
- Is not engaged in a business that is substantially funded directly or indirectly from public sources.
- The business must have been current as of March 1, 2020, to entities that extended financing to the small business and under any lease of premises or asset.
Interest Rate: 4% per annum (after six months)
Loan Amortization – Businesses will not be required to pay interest for the first six months. Interest payments will be required in months 7-12. Principal and interest payments will begin in month 13. Detailed eligibility information can be requested of the Community Business Development Corporation.
Please click on the link below to select your CBDC to start your application.
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New Brunswick:
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Please note this program is currently only available in the province of New Brunswick
Please note: We are currently experiencing a higher than usual number of inquiries and loan applications, which could lead to longer than normal wait times. If you have received an email notification, that is confirmation we have received your application and are working on your request. Rest assured a CBDC representative will contact you soon. Thank you for your cooperation and understanding.