We follow 19 financing programs across the four Atlantic provinces. The main ones are below.
Where business development loans come from in Atlantic Canada
Business development loans in Atlantic Canada usually come from one of three sources: a Community Business Development Corporation (CBDC), a provincial lending program run by the province's own finance arm, or ACOA, through repayable contributions. None of it is a grant. It is repayable financing, most of it with interest, from lenders that exist to serve the applicants banks turn down.
CBDC loans: up to $150,000 in all four provinces
The CBDC General Business Loan lends up to $150,000 to eligible applicants, over terms from one year to ten, and in certain circumstances a CBDC can go above that cap. It funds start-up costs, land and buildings, machinery and fixed assets, vehicles used strictly for business, franchise purchases, leasehold improvements and working capital. Financing can be structured as a demand or term loan, a loan guarantee, or an equity investment.
The First-time Entrepreneur Loan lends up to $150,000 to launch or buy a business, and pairs the capital with counselling and training. The Innovation Loan lends up to $150,000 for new equipment, software or processes, the installation and infrastructure around them, staff training on the new technology, and development of new products or services.
The Impact Loan is for urban businesses: up to $50,000 at low interest with flexible terms and no penalty for early repayment, delivered per region by participating CBDCs, so offerings vary by office.
Three CBDC loans are open only to certain groups. The CBDC Youth Loan is for entrepreneurs aged 18 to 34, with competitive rates and amounts that can exceed $150,000 in certain circumstances. The CBDC Immigrant Loan pilot lends up to $20,000 and is open only to temporary residents, from a pilot fund that launched with $250,000. In Newfoundland and Labrador the CBDC Newcomer Loan Program lends up to $20,000 with terms up to ten years, built for newcomers who cannot access other funding because of residency status.
Nova Scotia: up to $500,000 through a credit union
The Small Business Loan Guarantee Program is the biggest provincial program open to any Nova Scotia business. It offers up to $500,000 in financing as term loans, working capital or lines of credit, arranged through participating credit unions with the Nova Scotia Co-operative Council, Atlantic Central and the Province of Nova Scotia behind it. It covers starting a small business, buying one, and growing an existing one. The federal Canada Small Business Financing Program, through your bank, goes higher, up to $1,150,000.
The province stands behind the loan to help you secure better terms than a young business would otherwise be offered. You still repay principal plus interest. If you are still at the idea stage, start with grants to start a business in Nova Scotia.
Prince Edward Island: up to $100,000 and up to $15,000 from Finance PEI
The Entrepreneur Loan Program lends up to $100,000 to start, improve or expand a PEI business, with working capital capped at $35,000 of that total. Interest floats at TD Bank prime plus 3%, and there is a 10% equity requirement. It funds equipment, storefront renovations, vehicles for business use, and inventory or payroll within the working-capital cap.
The Micro-Loan Program lends up to $15,000 per applicant at TD Bank prime plus 4.5%, repaid over up to five years. It covers smaller needs such as tools and equipment for tradespeople, qualification and challenge-exam fees, small-scale food production equipment, general start-up costs, and winter production runs for craft and giftware makers.
Finance PEI also runs two programs that are only for certain sectors. Manufacturing and Processing Assistance is open to manufacturing and processing businesses only: operating loans covering up to 100% of inventory and day-to-day costs, and capital loans generally up to 80% of the purchase price or fair market value of the asset, with terms up to 20 years. Tourism Financing Assistance is for licensed tourism operators only, with long-term loans generally up to 80% of asset value over up to 20 years, and operating loans up to 100% of pre-season preparation costs. For more on PEI, see grants to start a business in PEI.
New Brunswick: CBDC loans plus up to $3,000 for students
New Brunswick businesses can use the CBDC loans above and the ACOA programs below. The province adds one program of its own: Student Entrepreneurship, up to $3,000 interest-free for students launching a summer business that creates at least one full-time summer job for them, administered by WorkingNB with CBDC Restigouche on the financial side. Repay it in full by October 15 and meet every requirement, and up to one-third of what you borrowed comes back to you. See also grants to start a business in New Brunswick.
Newfoundland and Labrador: Bank of Canada rate plus 0.5%
The Business Investment Program lends repayable term loans at the Bank of Canada rate plus 0.5%, administered by the Department of Jobs, Growth and Rural Development. For a young business that needs a loan rather than a grant, that is a low rate. It targets projects in strategic growth sectors, export-market expansion, and capital-base increases that attract private investment. The maximum loan amount is not published, so confirm it with the department. More detail: grants and loans to start a business in Newfoundland and Labrador.
ACOA: federal support in all four provinces
The Atlantic Canada Opportunities Agency's Business Development Program offers interest-free, unsecured repayable contributions covering up to 50% of capital costs for launching or expanding, and up to 75% of costs for growth activities such as staff training, marketing and trade, productivity improvements and quality assurance. ACOA's Regional Economic Growth through Innovation stream adds interest-free repayable capital for scaling up, adopting technology and improving productivity, though specific amounts are not published, so confirm the contribution and cost share with an ACOA officer.
Ulnooweg: financing for Indigenous entrepreneurs
Indigenous entrepreneurs across Atlantic Canada have their own lender, Ulnooweg: micro lending up to $5,000 at 9.25% over up to two years, women and youth lending up to $25,000 at 8% over up to five years, general lending up to $750,000 for individuals and up to $1.5 million for communities, plus non-repayable contributions covering up to 75% of business planning and feasibility work and up to 40% of establishment, expansion or acquisition costs.
Three rules to know before you apply
- Approval comes before purchase. Start spending first and most of these programs will not fund the work.
- A loan is repaid. The rates here are low, but you still have a repayment schedule, and lenders want to see the cash flow to pay it.
- Rules on sector and on who can apply are strict. A tourism loan is only for a licensed tourism operator, and a youth loan is only for someone aged 18 to 34. A strong plan does not change that.
Nearly every one of these applications wants written quotes for the work before anything is approved. BBN Labs explains the rules and sends deadline alerts. You apply directly with the lender or program office.
Starting from scratch? See start-up funding, province by province.