New Brunswick Government Business Loans: Financing Options for Small Business Growth
Looking for flexible financing to launch or expand your business in New Brunswick? This article outlines New Brunswick government-backed business loans available through provincial programs, including what they can be used for, the types of loans available, and how to qualify.
Whether you’re building a startup or growing an existing company, this guide will help you explore accessible loan options that support business success in New Brunswick.
✅ What is a Government-Backed Business Loan?
A government-backed business loan is financing provided or supported by a public-sector agency. These loans are designed to increase access to capital for small and medium-sized businesses and typically offer:
- Competitive interest rates
- Flexible repayment terms
- Lower collateral or credit requirements
- Support for businesses in rural or strategic sectors
Unlike grants, these funds must be repaid, but their borrower-friendly terms make them a valuable option for entrepreneurs who may not qualify for traditional loans.
✅ Types of Provincial Business Loans in New Brunswick
New Brunswick offers a variety of loan options tailored to the needs of different business stages and industries. Common categories include:
◾ Startup Loans
Designed for new businesses that need capital to launch operations, purchase inventory, hire staff, or invest in basic infrastructure.
◾ Expansion Loans
Intended for established businesses looking to grow, scale, or diversify into new markets.
◾ Capital Asset Loans
Used to finance equipment, machinery, vehicles, or property required for business operations or growth.
◾ Working Capital Loans
Provide operational funds to help manage cash flow, cover payroll, or support day-to-day business expenses.
◾ Sector-Specific Loans
New Brunswick’s economy emphasizes sectors like aquaculture, forestry, tourism, energy, and manufacturing. Some loan programs are tailored to support innovation and development in these industries.
✅ How to Qualify for a Business Loan in NB
Loan program eligibility varies, but most New Brunswick government-backed loans require that you:
- Operate or plan to operate a business in New Brunswick
- Are a Canadian citizen or permanent resident
- Submit a viable business plan with financial projections
- Demonstrate the ability to repay the loan
- Align your business with the focus of the loan program (e.g. rural development, job creation, innovation)
Depending on the size and type of loan, you may also need to provide collateral, a personal guarantee, or co-investment.
✅ Alternatives to Provincial Government Loans in NB
If a loan isn’t the right fit — or you’re looking to combine financing sources — New Brunswick offers other forms of funding:
◾ Grants
Non-repayable funding is available for specific business activities such as hiring, training, innovation, or regional economic development.
◾ Wage Subsidies
Programs that reduce payroll costs, especially when hiring students, youth, or workers from underrepresented groups.
◾ Tax Credits
Eligible businesses can benefit from federal credits like SR&ED and provincial incentives tied to R&D, digital media, and cultural industries.
◾ Equity Investment Programs
High-potential startups and growth-oriented businesses may access capital through angel investors, venture capital firms, or public-private partnerships within Atlantic Canada.
✅ New Brunswick Government Business Loans: Current Loans Available
Forgivable loan of up to $16,000 per bed unit, based on the cost of mandatory repairs and the number of eligible beds; owners (except non-profit organizations) must contribute 25% of the total cost of mandatory repairs
Loan
Description:
The Program is offered by the Department of Social Development (SD). It provides financial assistance to owners/landlords for mandatory repairs to rooming houses with bed units that are affordable to low income occupants.
Forgivable loan of up to $36,000 per self-contained unit and up to $24,000 per bed unit; except for non-profit organizations, owners must contribute 25% of the total repair cost
Loan
Description:
The Rental Conversion Program provides funding to help convert a non-residential property into affordable rental housing.
No fixed amount
Loan
Description:
Short-term financial assistance for exporting businesses facing disruptions to ongoing operations due to tariffs (e.g., revenue loss, increased costs, and supply chain disruptions).
Forgivable loan of up to $36,000 per unit (rental units) or up to $24,000 per bed unit (rooming houses), based on the cost of mandatory repairs and the number of eligible units; except for non-profit organizations, owners must contribute 25% of the total repair cost
Loan
Description:
The Rental Residential Rehabilitation Assistance Program (RRAP) provides landlords with financial help to repair substandard units rented to low-income households and rooming houses.
Loan guarantees on livestock loans of up to $75,000; guarantees up to 90% of the loan, at the lender’s prime rate + 1%
Loan, Loan Guarantee
Description:
The Livestock Incentive Loan Program provides loans to financial institutions for New Brunswick farmers purchasing and raising livestock. It also provides guarantees to financial institutions for approved livestock purchases.
no fixed amount
Loan
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans to promote the development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan must first seek financing from a private lender. DAAF’s loan program may then be available to help fill the gap between the assistance required and what the client has been approved for privately. New entrants, defined as someone who has owned a farm for five years or less, may be eligible for lower interest rates and equity requirements.
no fixed amount
Loan Guarantee
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides loan guarantees to promote development of the agriculture sector as a complementary lender. Clients interested in a DAAF loan guarantee must first seek financing from a private lender.
Unsecured personal loan between $5,000 and $50,000 in working capital for startups and expansion projects, at a fixed rate of Prime + 2%, interest-free for 1 year from first disbursement
Loan
Description:
Ignite operates the Impact Loan program for entrepreneurs in the Greater Fredericton Region. The personal loan is between $5,000 and $50,000 in working capital for startups and expansion projects.
no fixed amount
Loan
Description:
The Fisheries Loans provide financial assistance in the form of loans to new or existing commercial fishers for the purchase of fishing licenses, quotas, engines or equipment related to fisheries, new or used vessels or for making major repairs to the hull or engine of a vessel. The Department of Agriculture, Aquaculture and Fisheries (DAAF) acts as a complementary lender, so clients interested in a DAAF loan or loan guarantee must first seek financing from a private lender.
no fixed amount
Loan Guarantee
Description:
The Fisheries Loan Guarantees provides loan guarantees to New Brunswick fishers and sea farmers for the purchase of fishing licenses, quotas, engines or equipment related to fisheries, new or used vessels or for making major repairs to the hull or engine of a vessel. The program is designed to share the financial risk with financial institutions.
no fixed amount
Loan, Loan Guarantee
Description:
The Department of Agriculture, Aquaculture and Fisheries (DAAF) provides repayable loans and loan guarantees to promote development of the aquaculture sector as a complementary lender. DAAF will work with other lenders to facilitate succession and new development of viable projects, such as: purchasing of new or used vessels, undertaking activities related to aquaculture, purchasing an engine or equipment related to aquaculture, or making major repairs to the hull or engine of a vessel.
no fixed amount
Loan
Description:
The Affordable Rental Housing Program provides financial assistance to private entrepreneurs, private non-profit corporations (includes off-reserve Indigenous population), and co-operatives for the construction, rehabilitation, and conversion of rental housing projects.
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