CBDC NB Small Business Emergency Working Capital Program
Highlights
This program is designed to support small businesses like yours that have been impacted by the COVID-19 pandemic. You can receive up to $100,000 in working capital loans to help manage your business during these challenging times. The loan offers a 4% interest rate after the first six months, with no interest payments required for the first six months. This gives you breathing room to stabilize your operations before starting repayments.
Key Benefits:
- No interest payments for the first six months
- Flexible repayment terms with interest-only payments in months 7-12
- Principal and interest payments starting in month 13
This financing is better than many others because it is backed by the government, ensuring more favorable terms and conditions. Being approved for this program will provide you with the necessary funds to cover operating expenses, manage cash flow, and keep your business viable during and after the pandemic. The application process is straightforward, and if you meet the criteria, qualifying should be relatively easy.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- No interest for the first six months.
- Interest payments required in months 7-12.
- Principal and interest payments begin in month 13.
- Interest rate: 4% per annum after the initial six months.
Eligible Expenses:
- Working capital needs directly impacted by the COVID-19 pandemic.
Use of Funds:
- Funds cannot be used for expenses not directly related to the business's working capital needs due to the pandemic.
Fees:
- No specific fees are associated with this program.
Qualifications
- Must be a small business engaged in commercial enterprises.
- Must employ 1 to 49 employees.
- Must have sales for the most recent fiscal year of less than $10 million.
- Must have experienced adverse effects on or after March 15, 2020, due to the COVID-19 pandemic.
- Must have a reasonable plan or prospect to remain viable after the pandemic.
- Must be a corporation, proprietorship, partnership, joint venture, or First Nation enterprise.
- Must be registered with Service NB.
- Must have its primary place of operations in New Brunswick.
- If a corporation, must be in good standing as of January 1, 2020.
- Must have been in good standing and current with financial institutions and government remittances prior to the COVID-19 crisis.
- Must have no prior history of bankruptcy or default.
- Must have explored options with their financial institution and federal support programs.
- Must have been viable and not experiencing liquidity or other financial difficulties as of March 15, 2020.
Must have been current as of March 1, 2020, to entities that extended financing and under any lease of premises or asset.
Disqualifications:
- Businesses engaged in activities substantially funded directly or indirectly from public sources.
Description
The Government of New Brunswick has introduced a program to help your business during the COVID-19 pandemic. You can borrow up to $100,000 in working capital to keep your operations running smoothly.
This money can be used for various needs, such as paying rent, utilities, or other essential expenses. No interest is charged for the first six months. From months 7 to 12, you will only need to pay interest. Principal and interest payments start in month 13.
This program is designed to provide immediate relief and help your business remain viable during these challenging times. Take advantage of this opportunity to secure the funds you need to navigate through the pandemic and beyond.
Program Steps
Gather Required Documentation:
- Financial statements for the most recent fiscal year.
- Cash flow projections for the next six months.
- Business plan outlining how the loan will help your business.
- Proof of registration with Service NB.
- Documentation showing the business was in good standing as of January 1, 2020.
- Records of being current with financial institutions and government remittances prior to COVID-19.
Contact Your Financial Institution:
- Discuss your current financial situation and explore any available options they may offer.
Explore Federal Support Programs:
- Look into federal programs that may provide additional support for your business.
Prepare Your Application:
- Visit the CBDC website and select your local CBDC.
- Complete the application form with all required information.
Submit the Application:
- Ensure all required documents are attached.
- Submit your application through the CBDC portal.
Await Confirmation:
- You will receive an email notification confirming receipt of your application.
- A CBDC representative will contact you to discuss the next steps.
Review Loan Terms:
- Upon approval, review the loan terms, including the interest rate and repayment schedule.
- Understand that interest payments will start in month 7, and principal payments will begin in month 13.
Finalize the Agreement:
- Agree to the final terms and conditions.
- Sign the loan agreement to receive the funds.
Use the Funds:
- Utilize the loan for working capital to support your business during the pandemic.
Maintain Communication:
- Stay in touch with your CBDC representative for any further assistance or clarification needed.