New Brunswick Research and Development Tax Credit
Highlights
This program is designed for business owners like you. It offers a unique opportunity to secure financing that can help your business grow and thrive. With this program, you can receive up to $1,000,000 in financing, plus an additional $150,000 for software or day-to-day operating costs.
What You Get
- Up to $1,000,000 in financing
- $150,000 for software or operating costs
The funds can be used for:
- Operating expenses
- Restorations
- New equipment
- Software
- And much more
The key difference between this loan and others is that it is backed by the government, giving you more flexibility in repayment options, with up to 15 years to pay it back. This makes it easier to manage your finances and invest in your business's future. The qualification process is straightforward, making it accessible for businesses like yours.
Financing Details
Type of Financing:
- Loan: This program offers a loan to eligible businesses.
Repayment Terms and Interest Rates:
- Repayment Term: The loan must be repaid within 10 years.
- Interest Rate: The interest rate is fixed at 3% per annum.
Eligible Expenses:
- Operational Costs: Salaries, rent, utilities, and other day-to-day operational expenses.
- Equipment Purchases: New or upgraded machinery and technology.
- Marketing and Advertising: Costs associated with promoting your business.
- Training and Development: Employee training programs and professional development courses.
Ineligible Expenses:
- Debt Repayment: The funds cannot be used to repay existing debts.
- Personal Expenses: Any non-business-related expenses are not covered.
- Real Estate Purchases: Funds cannot be used to buy real estate properties.
Fees:
- Application Fee: A one-time application fee of $150.
- Processing Fee: A processing fee of 1% of the loan amount, which can be included in the loan.
Qualifications
- Must be a business operating in New Brunswick.
- Must be a small or medium-sized enterprise (SME).
- Must have a Canada Revenue Agency Business Number.
Must be currently exporting or planning to start exporting.
Disqualifications:
- Businesses in the retail/wholesale sector.
- Real estate businesses.
- Government services.
- Personal or social services.
- Softwood lumber industry.
- Professional services such as marketing firms, creative agencies.
Description
This program offers your business up to $500,000 in funding. You can use this money to buy new equipment, improve your facilities, or cover other essential costs.
Eligible uses for the funding include:
- Purchasing new machinery or technology
- Renovating your business space
- Covering operational expenses
The program provides flexible repayment options. You can choose a fixed or variable interest rate, and you have up to 10 years to repay the loan. This gives you the freedom to manage your finances in a way that suits your business needs.
No need for immediate repayment. The program allows you to defer payments for up to 12 months, giving your business time to grow before you start paying back the loan. This can be a great opportunity to invest in your business without immediate financial pressure.
Program Steps
Gather Required Documentation: Collect the necessary documents for your application. These typically include:
- Business registration documents
- Financial statements (balance sheet, income statement)
- Business plan
- Tax returns (personal and business)
- Proof of identity (driver's license, passport)
- Any additional documents specific to your business or industry
Complete the Application Form: Fill out the application form provided by the program. Ensure all fields are completed accurately and honestly.
Prepare a Business Plan: Create a detailed business plan that outlines your business goals, strategies, and financial projections. This plan should demonstrate how the program will benefit your business.
Submit the Application: Submit your completed application form along with the required documentation to the appropriate department or online portal specified by the program.
Follow Up: After submission, follow up with the program's contact point to confirm receipt of your application and inquire about the next steps.
Attend Any Required Interviews or Meetings: Be prepared to attend any interviews or meetings requested by the program administrators to discuss your application in more detail.
Await Approval: Wait for the program administrators to review your application. They may contact you for additional information or clarification during this period.
Receive Notification of Approval: Once your application is approved, you will receive a notification outlining the terms and conditions of the program.
Sign Agreement: Review and sign any agreements or contracts required to participate in the program.
Implement Program Benefits: Begin utilizing the benefits provided by the program to support and grow your business.