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GOVERNMENT FINANCING FOR BUSINESSES OPERATING IN ATLANTIC CANADA By Brian Tabor Q.C. and Meaghan Fawcett F inancing can be a major roadblock to any business looking to get off the ground or expand. There are a myriad of financial assistance programs provided by government, both federally and provincially, for all types of ventures. This article provides a brief overview of programs that offer financial assistance to Atlantic Canadian businesses. Federal With the Business Development Bank of Canada's (BDC) pre-approved equipment line businesses are able to make their equipment purchases within a 12 month period with guaranteed terms and conditions, while receiving a high percentage of financing for new and used equipment. Also, there is the possibility of additional financing for expenses such as shipping, installation and training. BDC also offers interest only payments for the first 12 months, quick disbursement of funds, customized repayment schedules and repayment without penalty. Eligibility 4 FALL 2012 DOING BUSINESS IN ATLANTIC CANADA for this program is evaluated on a case by case basis. The Atlantic Canada Opportunities Agency (ACOA) provides the Business Development Program (BDP), designed to allow businesses to set up and expand. The BDP provides access to capital in the form of interest-free, unsecured, non- repayable assistance. This financing is available to most commercial and not for profit businesses. Eligible activities include capital investment, training and marketing. ACOA will provide financing of up to 50 per cent for the construction/acquisition of a new building, machinery or equipment, site improvements and start up costs such as insurance. They will provide financing of up to 75 per cent for marketing, training, contract bidding, innovation, quality improvement and consulting costs. This financing is repayable on a time schedule that is tailored to each business's situation. To qualify for this financing your business should be economically viable, have a financial need, and provide economic benefit to the community.