A direct loan may be provided to a Company for capital expenditures and/or working capital purposes. Loans are repayable with interest at or near market rates over a negotiated term. The Company will be asked to provide an acceptable level of security to secure the loan, according to the level of risk of the project.
A loan guarantee may be provided to secure a line of credit, a loan or a portion of a loan that is made to a business by a financial institution. The lending institution administers the loan and holds the security. Loan guarantees are frequently used for purposes of increasing working capital borrowing ability, but may also be used to secure additional term debt for working capital or capital expansion purposes.
Payroll rebates may be available to Companies for workforce expansion. Rebates would be paid on a percentage of incremental salaries that meets a certain threshold amount. Rebates would be paid after annual claims are made; they are not paid in advance.
Non-repayable contributions, when appropriate, may be provided for large capital expansion projects that have significant positive long-term sustainable economic benefits for both the Company and the Province of New Brunswick. In some instances, the contributions are provided via a forgivable loan.