The Restaurant Loan Guarantee Program aims to assist businesses operating full-service restaurants throughout Newfoundland and Labrador that require emergency debt restructuring to protect the long-term operation of the business, the Ministry of Industry, Energy and Technology said in a news release.
The program will offer loan guarantees of a maximum of $100,000 per loan to financial institutions that lend to qualifying businesses. Loans up to the maximum amount will be fully guaranteed by the Government of Newfoundland and Labrador and will have a repayment term of up to 10 years.
Further details about the program, including eligibility criteria, can be found at gov.nl.ca/iet/funding/restaurant-loan-guarantee-program/.
The program is offered through a limited-time call for proposals and will require businesses to submit an application to the Department of Industry, Energy and Technology within 90 days of the launch of the program that demonstrates their eligibility for the program and provides a proposal for debt restructuring.
The department will accept and review applications on a first-come, first-served basis until the expiration of the application period, or until $10 million in guarantees have been issued, whichever comes first.
The province’s 2025 budget included up to $10 million in guarantees available for a restaurant loan guarantee program to assist locally owned restaurants, $1 million to increase wholesale discounts for restaurants, bars, and lounges, and $800,000 to increase compensation on products purchased by brewers’ agents and liquor express retailers.
The province is maintaining the reduction in the Small Business Tax rate at 2.5 per cent that was lowered last year, as well as the increased exemption to HAPSET that was made in the 2023 budget.
Craig Foley, chief executive officer of Hospitality Newfoundland and Labrador, said the program “recognizes a sector that is vital not only to our local communities but also to visitors to the province. The restaurant sector plays an essential role in the continued growth of our tourism industry, enhancing the visitor experience and supporting economic development across the province.”