Funding programs may be difficult to access, especially for new or small businesses. However, the Atlantic Canada business network is vast and has plentiful market opportunities even for a Canadian business who is just starting out. So whether you are having trouble reaching your target market, want to hire employees, need to reach new markets, or just need help starting out, there will be a loan geared towards your needs. 

This guide will allow you to compare business loans throughout Atlantic Canada so you can easily assess which one best suits your objectives.

Government services such as the Atlantic Canada Opportunities Agency works to flourish economic growth by providing funding opportunities to eligible applicants. So you may also consider them as a potential source to receive assistance. 

The loans listed below provide entrepreneurs all across Atlantic Canada with funding so they can attain their business goals. A note to remember is that the loans offered by the Community Business Development Corporation can provide funding that exceeds $150,000 per eligible applicant, in certain instances.

Social Enterprise Loan

What loan is it?: To be considered for a loan the business or organization must be a social Enterprise, meaning the entity sells or produces goods and services meant to generate income in the support and sustainment of social and community development goals. A social enterprise includes a cooperative, a non-profit organization, or a membership organization.

Social enterprise development is the Community Business Development Corporation’s (CBDC) main objective. By offering loans and financing they aim to support the creation of active rural communities and social activities. 

Loan amount and repayment terms: The CBDC offers loans of a maximum of $150,000 per eligible applicant with competitive repayment terms and interest rates.

This financing can be used to purchase equipment, machinery, or other items necessary for operations.

Loan amortizations of up to ten years are available, based on the life expectancy of the asset(s) the loan is meant to cover.

How to qualify:  Your Social Enterprise must meet the following requirements in order to qualify for the loan: 

• Both new and existing businesses categorized as social enterprises are eligible
• Social Enterprises may be year-round or seasonal
• The Social Enterprise operations must be located Atlantic Canada in rural areas
• Loans may be used to open a new Social Enterprise or to renovate, expand, or upgrade an existing one
• The Social Enterprise’s operations should provide economic viability, ensure sound business practices, and facilitate job creation within its community.

Contact an expert at the CBDC to find more information on your specific province here. 

Innovation and Technology Business Loans

What loan is it?: The type of tech a business adopts will play a role in how quickly that business will grow and how successful they could become. However, as advances in technology are changing at a remarkable pace, it could be difficult for businesses to keep on top of trends. 

The Community Business Development Corporation (CBDC) realizes the impact technology has on the maintenance and development of a growing economy in Atlantic Canada. So in order to advance the adoption of technologies for business, the CBDC has designed the CBDC Innovation Loan. This loan is designed to encourage business productivity and effectiveness in the communities of rural Atlantic Canada. New technologies may include existing methods that have been adapted or repurposed for commercial applications. The loan could also be used for financing for new products or services and training, as well as financial support.

Loan amount and repayment terms: CBDC offers up to $150,000* per qualified borrower. All loans are repayable and have competitive interest rates and repayment terms. Financial options include term loan and demand loans, loan guarantees or equity investments.

CBDC Innovation Loans may be used for various business operations such as, the purchase of software, equipment, processes or licenses, and other things defined as “new” technology meant to improve business processes. The cost of infrastructure changes or installation, or implementation and utilization of new technology also qualify, including the training of employees in these new technologies and applications.

How to qualify: Rural based businesses throughout Atlantic Canada must meet the following criteria to qualify for CBDC’s Innovation Loan:

• New and existing entrepreneurs
• Both the borrower and the business must be located in rural areas
• Both seasonal and year-round businesses are eligible
• The business should have realistic prospects of economic viability and revenue potential, including the creation and/or maintenance in the community.

Contact an expert at the CBDC to find more information on your specific province here.

General Business Loan

What loan is it?: The General Business Loan offered by the CBDC is a flexible commercial business loan that is offered to small to large sized businesses. This loan may be used for: 

• New machinery or equipment
• Upgrading facilities or buildings
• Improving or expanding your business to tap into new opportunities

Loan amount and repayment terms: The maximum amount on this loan is $150,000. All loans are repayable within one to ten years with competitive interest rates and repayment terms, with a possibility for a loan guarantee, or equity investment.

How to qualify: CBDC’s General Business Loan may be provided to businesses that meet the following criteria:

• Businesses or entrepreneurs purchasing a new or existing company within rural Atlantic Canada
• The expansion of an existing business, or if the existing business is in need of co-working capital
• Both seasonal and year-round businesses are eligible
• Eligible business expenses can include: start-up costs, purchase of land and buildings, fixed assets, machinery and other equipment, fixtures and furniture and in some cases vehicles
• Leasehold improvements and franchise purchases are also eligible
• Applicants must show a legitimate chance of economic viability. Employment creation and/or maintenance that does not negatively impacting existing businesses within the area.

Contact an expert at the CBDC to find more information on your specific province here.

First-Time Entrepreneur Loan

What loan is it?: First time entrepreneurs may have a difficult time finding financial assistance through traditional banks or financial institutions - even if they have lucrative ideas. The First-Time Entrepreneur Loan is there to help new entrepreneurs who live in a rural community within Atlantic Canada get their business off the ground. Additionally to the loan, they offer counselling and training services. 

Loan amount and repayment terms: This CBDC loan offers up to $150,000 to qualified applicants in Atlantic Canada, including sole proprietors, limited companies and partnerships (when majority control resides with the new entrepreneur).

First-Time Entrepreneur Loans are repayable, possessing competitive repayment terms and interest rates. Financing may be term or demand loans, loan guarantees, or equity investments.

How to qualify: To successfully qualify you must meet the following criteria: 

• You must be a first-time entrepreneur residing in a rural area of Atlantic Canada
• Will use the loan for a business start-up, or to purchase an existing business
• Both seasonal and year-round businesses may apply
• Illustrate that funding will be used for any of the following: start-up costs, working capital, fixed assets, furniture and fixtures, buildings and land, machinery or other types of equipment, and in some cases vehicles used strictly for business operations
• Franchise purchases and leasehold improvements are also eligible

Contact an expert at the CBDC to find more information on your specific province here.

CBDC Youth Loan

What loan is it?: Young entrepreneurs (18-34) experience many challenges when it comes to receiving funding to start a new business. That's why the CBDC Youth Loan offers young entrepreneurs access to the capital they need for business start up, expansion or modernization. 

Loan amount and repayment terms: The CBDC Youth Loan is a repayable loan with attached competitive interest rates and repayment terms, and options such as demand and term loans, equity investments or loan guarantees. Such financial support can be used by young entrepreneurs to cover training expenses like business management and other courses to make sure they have the skills to get their business going.

How to qualify: Qualifying criteria for this loans includes: 

• Available to youth borrowers, aged 18 to 34 within rural Atlantic Canada
• Eligible for business startups, modernization, or expansion
• Both year-round and seasonal businesses qualify
• Loans may be for a variety of business expenses: start-up costs, fixed assets and/or working capital:
• Franchise purchases and leasehold improvements also qualify
• Can be used to purchase assets of a previous business, which must be through a transaction at arm’s length and the assets must be bought at or below current market value
• Sole proprietorship, a limited company or a partnership (majority of the care and control must reside with the new entrepreneur)
• The intended business operations must not have a negative impact on existing area businesses.
• The borrower’s business should have a reasonable expectation of economic viability, as well as employment creation and/or maintenance in their community.

Contact an expert at the CBDC to find more information on your specific province here. 

These New Brunswick loans will offer residents the financial assistance necessary to start and develop their businesses. 

For a guide on grants in New Brunswick, see this article.

Impact Startup Loan

What loan is it?: The Impact Startup Loan offers funding to small and medium-sized businesses in Greater Moncton. Entrepreneurs of all ages can apply for this start-up loan, while established business owners must be between the ages of 19 to 39 for expansion financing.

Loan amount and repayment terms: Low-interest loans of up to $25,000 are available with flexible repayment terms and an interest rate of Prime + 2%. There will be no penalty for early repayment of the principal. 

How to qualify: The criteria to apply for this loan is fairly lenient. You will, however, need a detailed business plan. 

You can contact them by email or phone number: info@3plus.ca or (506) 858-9550

Agriculture Loan and Loan Guarantees

What loan is it?: The Department of Agriculture, Aquaculture and Fisheries (DAAF) loan supports the development of the agricultural sector through repayable loans and loan guarantees. Clients interested in a DAAF loan or loan guarantee 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. DAAF will work with other lenders to facilitate succession and new development of viable projects. 

Loan amount and repayment terms: Interest rates are determined on a case by case basis, and there is no application fee to apply for this loan guarantee or loan. Repayment terms are dictated by the projects projected cash flow as illustrated in the business plan, with options covering principal and interest payments or interest only payments.

A loan guarantee fee of 1.5% of the loan amount is payable at the beginning of each year the guarantee is in place.

New entrants, defined as individuals who have owned a farm for less than five years, may be eligible for lower equity requirements and interest rates.

How to qualify: The individual must demonstrate a minimum 10% equity into the project, while new entrants must demonstrate a minimum of 5%. However, the equity level required might increase based on the project's risk level.

Eligible needs/projects include: 

• Purchase an existing farm
• Start a new farm
• Purchase shares in a farming operation
• Purchase land for farming
• Develop land for farming
• Working capital requirements

Applicants must submit a business plan that includes the following: 

• Detailed description of the business and corresponding project
• Financial data of a minimum projection of three years covering income statements and cash flow statements, plus the previous three years financial statements or income tax returns for existing operation
• Description of the management plan, how business will be operated and management’s qualifications including education and work experience
• A marketing plan
• Production details covering three-year historical summary of actuals plus a three year summary of projected production

 Email DAAF-MAAP@gnb.ca to get started. 

If you own or want to start a business in Newfoundland and Labrador, see the loan options below. 

For a guide on grants in Newfoundland and Labrador, see this article.

MBO Commercial Business Loans

What loan is it?: Metro Business Opportunities offers a multitude of flexible lending solutions through their own program along with their partners. These loans are intended for entrepreneurs and small businesses looking to start or grow their enterprise in St. John's or Mount Pearl.

Loan amount and repayment terms: You can get up to $80,000 in business financing through their Impact Atlantic loan program and the loans offered by their partners. Specific repayment terms depend on the loan. 

How to qualify: Each commercial business loan offered by the MBO and partners have different eligibility criteria.

Email contact@mboc.ca to for any questions.

Lendified Small Business Loan

What loan is it?: The Lendified Small Business Loan objective is to help companies throughout Newfoundland and Labrador overcome unexpected financial hurdles by providing a fast, and reliable funding for small business. Business owners can apply for their loan online, obtained pre-qualifications in 10 minutes, and get their funding in 48 hours. 

Loan amount and repayment terms: Lendified will match you with a loan provider that will suit your needs, with loan options ranging from $5,000 to $150,000. Their lenders look at all relevant information to determine a financing solution plan that works for all involved. 

With competitive interest rates and terms ranging between 3 and 24 months, you can pay back your business loan without compromising your operations.

How to qualify: Lendified provides short-term financing and support to a wide range of businesses in Newfoundland and Labrador, from industries such as:

• Retail 
• E-Commerce  
• Automotive 
• Healthcare  
• Hospitality
• Construction
• Accounting Bookkeeping
• Advertising PR Agencies
• Agriculture
• Agriculture Farming Fishing
• Arts and Entertainment
• Biotechnology Life Sciences
• Brokerage Insurance Mortgage
• Business Professional Services Consulting
• Child care and Education
• Consulting
• Dentists Orthodontists Dental Labs
• Dry Cleaning Laundry Services
• ECommerce
• Electronics
• Equipment Sales Rental
• Grocery Convenience Stores
• Healthcare
• Health Sports Fitness Facilities
• Home Care Elder Services
• Home Repairs Painting Handyman Services
• Hospitality Hotels Motels Inns
• Housing Real Estate
• IT and Software Services
• Janitorial Housekeeping Services
• Landscape Lawn Maintenance Gardeners
• Manufacturing
• Manufacturing Exporting
• Motion Picture Television Broadcasting Media
• Optometrists Eyeglasses
• Taxis Transportation Logistics Delivery Services
• Telecommunications
• Trades Plumbing Electrical Carpentry

Small business financing in Canada aims to financially support businesses with loans that can be used to cover the cost of various things, such as:

• Paying suppliers and bills
• Buying new equipment
• Refinancing debts
• Replenishing inventory
• Improving cash flow
• Expanding
• Relocating

If you need application support you can contact this phone number 844.451.3594 ext 310

CEED Startup and Expansion Loans

What loan is it?: CEED has been connecting entrepreneurs with the resources they need to help fund their business ventures for over 25 years. They offer loans for small and medium-sized businesses run by entrepreneurs of all ages. Recipients get support to develop their business knowledge and skills in marketing, accounting, human resources and business planning.

Services include: 

• The opportunity to explore options to help finance your business
• Provide guidance and templates for your business plan and financial projections
• Provide information on business resources
• Connecting you with business skills development opportunities

Loan amount and repayment terms: Loans range from $5,000 to $25,000 and include:

• Low interest rate of prime + 2%
• Low principal repayments
• No penalty for early repayment
• No interest for 6 months on $5,000 loans

How to qualify: Businesses registered within the Halifax, Dartmouth and Bedford boundaries are eligible to apply. 

If you have any questions about the application process you can contact this number 902-421-2333 

CUA Business Loan Program

What loan is it?: The CUA Business Loan Program helps entrepreneurs realize their full potential through financial aid. The aid could be used for starting or purchasing a small business and/or growing and expanding an existing business.

Loan amount and repayment terms: CUA can provide maximum funding of up to $500,000 in the form of term loans, lines of credit, and, working capital. Loans may be granted for a term of up to 10 years. The maximum guarantee the Province of Nova Scotia will guarantee is 90% of the value of all term loans and 75% on lines of credit. However, there is an available 90% guarantee to those that qualify under special financing streams.

How to qualify: Each application is evaluated on a case-by-case basis and is based on your business plan, viability and character. All types of businesses are eligible notwithstanding commercial and residential real estate, beverage taverns, or any venture of a questionable legal or ethical nature. 

There is also available special financing streams for social enterprises, immigrant entrepreneurs, and forestry and high-risk sectors. 

Book an appointment with a member of CUA Commercial Team today. Call them at 902-492-6500 or email info@cua.com.

See these PEI loans to take actionable steps towards creating the business you envisioned. 

For a guide on grants in PEI, see this article.

Government Entrepreneur Loan

What loan is it?: The Entrepreneur Loan Program is an initiative of the Province of Prince Edward Island that aims to help make financing available for the purpose of:

• Supporting new businesses start their operations or help established companies improve or expand their operations
• Improving access to loans that might not otherwise be available to businesses, of up to 100% of the loan request
• Stimulating economic growth and creating jobs for Islanders

Loan amount and repayment terms: The Entrepreneur Loan Program provides entrepreneurs with up to $100,000 to use for new and existing Prince Edward Island businesses. Loans are managed through Finance PEI, providing terms for up to seven years. Interest is charged at a floating rate of TD Bank prime plus 3%.

How to qualify: In order to qualify you must meet the following requirements: 

• You must be a Prince Edward Island resident, be 18 years of age or older, and be an owner or operator of the business
• For partnership businesses partner must be a co-applicant, while for a corporation, all shareholders must be co-applicants
• When the approval of the loan happens, your must have 10% of the total loan available in equity.
• Working capital financing cannot exceed $35,000. Such funding for capital costs is only issued when Finance PEI receives invoices and receipts
• Specific activities within these sectors which are not eligible for financing include:

• Pay day loan, pawnbrokers, cheque cashing and white label cash machines;
• Grocery and convenience stores
• Food and beverage services
• eConsulting
• Farming, fishing, and forestry where similar supports already exist
• Real estate development/brokerage, bed and breakfast/cottage operations and business or insurance brokerage
• Charities, schools, and religious organizations
• Professional and financial services

For any additional questions you can contact financepei@gov.pe.ca

Micro-Loan Program

What loan is it?: The Micro-Loan Program is a newer initiative through Finance PEI that supports entrepreneurs on Prince Edwards Island. The objective is to assist with financing and working capital requirements. 

Loan amount and repayment terms: Finance PEI provides loans up to a maximum of $15,000 per applicant for new and expanding businesses. Micro-loans will be sourced directly through Finance PEI with repayment terms of up to a maximum of 5 years at an interest rate of TD Bank Prime + 4.5%.

How to qualify: Examples of eligible categories for this financing program are:

• Business start ups
• Recent graduates from trade school or those with a job offer in a new field who do not have the resources to obtain new tools or equipment necessary for the position
• Newcomers to Canada who require assistance getting back into their previous line of work, covering the cost of a challenge exam or for professional fees
• Funds available for growers, harvesters, and processors to invest in equipment and materials to increase the food supply in their communities

• Provides financing to new and expanding craft and giftware manufacturers to increase production of their products during the winter months for sale during peak selling periods

For any additional questions you can contact financepei@gov.pe.ca

Manufacturing and Processing Assistance

What loan is it?: Finance PEI offers Manufacturing and Processing Assistance term loans for purchasing capital assets and operating loans for the business’ accounts receivable and inventory.

• Capital Loans: Capital loans are to be amortized over the life expectancy of the asset and based on the company's operational cash flow. This loan is available for the purchase and/or refurbishment of capital assets and in some cases, for debt restructuring.

• Intermediate Term Loan: This loan may be used for improvements to certain business assets, except for vehicles that do not directly contribute to the business’s income or sales.

• Operating Loan: This loan will be used for purchasing inventory and for the day-to-day operating costs of the business. 

Loan amount and repayment terms: Maximum financing generally does not exceed 80% of the purchase price or fair market value of the assets, whichever is less. Up to 100% financing may be provided for inventory purchases and account receivables based primarily on purchase orders and signed contracts/ agreements.

• Capital Loans: The maximum term for a loan is 20 years and has flexible repayment options, which are in line with your business’s cash flow. Loans are secured through real property or the asset. However in some cases alternate security may be considered. The loan limit will not exceed 80% of the fair market value or purchase price, whichever is less.

• Intermediate Term Loan: Such loans can help with improvements to certain business assets, notwithstanding vehicles that do not directly contribute to the business’ sales or income.

• Operating Loan: Up to 100% financing may be provided for purchasing inventory and for the day-to-day operating costs of the business. Operating loans shall be repaid from the sale of inventory and are based on the company’s cash flow.

How to qualify: Manufacturing and processing includes any person that:

• Carries on business, or intends to carry on business, in the province
• Operates a business that produces a product by mechanical method from a raw material that is altered to add value. Loans are available to buy land and buildings, specialized equipment, and in some cases, production inventory.

For any additional questions you can contact financepei@gov.pe.ca

With expense tracking and financial reporting features small businesses across Atlantic Canada can manage their finances and apply for lending programs with the use of QuickBooks Online accounting software.