News Release
Looking to access capital? / A la recherche de capitaux accessibles ? (Program)
August 16, 2010
Are you a New Brunswicker looking to; start-up a business, expand existing operations, or access short-term working capital? If so, the Small Business Loan Guarantee Program (SBLGP) may help.
SBLGP was developed to stimulate investment in small business, in eligible sectors. Delivered by your local Caisse Populaires and Credit Unions, in partnership
with Business New Brunswick, these financial institutions will be instrumental in facilitating the loan, putting more decision making power
back into your community.
Contact your nearest Caisse Populaire or Credit Union to see if your business is eligible.
www.creditunion.nb.ca
Be successful…in your community.
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Vous résidez au Nouveau-Brunswick et cherchez à lancer une entreprise, agrandir une exploitation existante ou obtenir un fonds de roulement à court terme? Dans ce cas, le Programme de garantie de prêts pour petites entreprises (PGPPE) pourrait vous aider.
Le PGPPE vise à stimuler l’investissement dans les petites entreprises des secteurs admissibles. Offert en collaboration avec Entreprises Nouveau-Brunswick, le programme est géré par les caisses populaires et les credit unions dont le rôle est de faciliter l’obtention des prêts et, par le fait même, de renforcer le pouvoir de décision dans la
communauté.
Pour savoir si votre entreprise est admissible, communiquez avec la caisse populaire ou la credit
union la plus près.
www.acadie.com
Soyez prospère...dans votre communauté.
Overview:
The objectives of the Small Business Loan Guarantee Program are to create sustainable employment opportunities in New Brunswick by financially stimulating small businesses to pursue opportunities within targeted sectors of the economy and to stimulate capital investment for small business start-up, and expansion.
Eligibility:
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
Note: Non profit operations are ineligible under the program.
Contact your local Caisse Populaire or Credit Union to see if your business is eligible (www.creditunion.nb.ca/www.acadie.com).
Description:
Term Loan Guarantee for Capital Costs (Start-up or Expansion) - term loans of up to $200,000 for up to seven years could be available to finance new capital costs, provided the loan does not represent more than 85% of the project cost net of assistance from the Atlantic Canada Opportunities Agency and non-repayable assistance from other sources (i.e., refinancing of existing debt would not be considered). Limitation: only one guaranteed term loan would be allowed at any one time.
Working Capital Loan Guarantee for New Businesses - revolving credit lines of up to $200,000 could be available provided security requirements are met. The purpose would be to help companies meet short-term cash flow requirements such as inventory financing, payroll, etc. The term of the guarantee would be two years, renewable upon agreement by all parties. Limitation: only one guaranteed working capital loan can be outstanding per borrower at any one time.
Working Capital Loan Guarantee for Existing Businesses - increases of up to $200,000 on existing revolving credit lines could be available to extend working capital lines of credit, which the borrower already has with the delivery agent, to help profitable companies meet short-term cash flow requirements such as inventory financing, payroll, etc. The applicant would be required to demonstrate its ability to meet its financial obligations, have a history of positive debt servicing, and have a working capital ratio of not less than one to one. The term of the guarantee would be two years, renewable upon agreement by all parties. Limitation: only one working capital loan can be outstanding per borrower at any one time.
Equity Requirements:
- Existing equity must be equal to at least 15% of all assets at the time of application. Equity is defined as shares, retained earnings and subordinated shareholder loans.
- Intangible assets will be excluded in the calculation of equity requirements. Contributed assets will only be included in the calculation of equity requirements at cost subject to verification by the delivery agent.