N.B. Creates $2-Million Fund For Export-Oriented Small Businesses
MONCTON – New Brunswick Premier Brian Gallant announced a capital investment policy worth approximately $2-million over the next year.
The Capital Investment Enhancement Policy will target businesses with fewer than 100 employees that have export potential. Companies can apply for a 20 per cent government funding in capital projects worth between $50,000 and $150,000, and a 25 per cent funding for projects valued at $150,000 to $250,000.
Opportunities New Brunswick (ONB) will administer the program. VP and CFO Paul Fudge said the investment would not include hiring expenses, as those can be funded through other programs, like payroll rebates.
“Eligible capital projects for this new enhancement program would be assets that [companies] buy, but not leased, and it’s not operational expenses,” he said. “So if you’re buying new equipment for manufacturing, if you’re buying laptops, specifically included in the policy is specialized software for manufacturers, that usually runs a lot of money as well. So anything tangible and physical that you’re buying for your operation to make it more efficient.”
In addition to being designated a small business by the Canada Revenue Agency, the companies that want to apply must also fit other criteria.
They must be a New Brunswick company or employ New Brunswickers in the province. They must have a product for export, import, replacement or integration into the province’s export supply chains. They must also be paying their workers an average of more than $30,000 a year in salary.
ONB said it will use an application process that’s already in place to assess whether companies are eligible for the program. The organization will also review and follow up with the businesses to ensure the funding is used for the intended projects.
“So they have to buy the equipment, install it, and prove that they paid their supplier and they send all of that information to us,” said Fudge. “In a big project, we’ll go onsite as well. For smaller ones we anticipate for the enhancement policy announced today, it will just be a paper audit back at our office at the end of the quarter.”
Rodney Carrier, the Vice President of the Bank of the Business Development Bank of Canada (BDC) for New Brunswick and Prince Edward Island, said the program will provide more access to capital for small enterprises.
“It’s very difficult to pinpoint exactly which sectors [export the most], but there are many sectors that BDC is involved in, whether it be fisheries or manufacturing,” he said. “But I can tell you that New Brunswick is doing more exports. And certainly this will continue to support that moving forward.”
Premier Gallant said the program aims to make sure that small New Brunswick companies and those that hire workers in the province will continue to innovate, remain competitive and can market their products and services around the world. The government hopes growing exports from New Brunswick will stimulate the economy and bring in “new money” into the province, he said.
“What’s important is that we recognize we are in a world where we have the U.S. that’s sort of talking about tariffs and talking about things that might really, unfortunately, put a downward trend on exports,” he said. “The federal government is doing everything they can to make sure we continue to have a flourishing trading relationship with the U.S. But we’re not just going to sit here idle waiting to see what happens.”
The government plans to roll out the program immediately, with the funding already included in the 2018-2019 budget introduced in January. It will review the uptake of the policy in a year and make a decision whether to invest again from there.