How Aquaculture Loans and Loan Guarantees Work in Atlantic Canada

How Aquaculture Loans and Loan Guarantees Work in Atlantic Canada

If you run an aquaculture business in Atlantic Canada, getting enough money to start or grow your operation can be harder than dealing with permits or finding workers. Boats, cages, engines, and other equipment all require a lot of money up front. That’s where aquaculture loans and loan guarantees can help. These programs are made to support businesses that need extra financing when regular bank loans aren’t enough.

In Atlantic Canada, provincial governments offer special programs to help aquaculture businesses get repayable loans or loan guarantees. The most used programs are in New Brunswick and Nova Scotia.

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What Are Aquaculture Loans and Loan Guarantees?

Aquaculture loans and loan guarantees are repayable government financing tools—they are not grants. Their main goal is to lower the risk for lenders or to give direct loans so aquaculture businesses can buy important assets.

There are two main types:

• Direct loans: The province lends money straight to your business, with set interest rates and rules for paying it back.
• Loan guarantees: The province promises to cover part of a bank loan, so banks feel safer lending you money.

Industries like shellfish or fish farms often use these tools because they need a lot of money up front.

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Aquaculture Loan Programs in New Brunswick

The Aquaculture Loans and Loan Guarantees program is run by the Government of New Brunswick’s Department of Agriculture, Aquaculture and Fisheries.

What the program supports

• Buying new or used boats
• Engines and equipment for aquaculture
• Big repairs to boat hulls or engines

Who is eligible

• Aquaculture businesses in New Brunswick only
• Projects must be directly connected to aquaculture work

Funding type

• Fully repayable loans or loan guarantees
• The amount you get depends on your project and what the department decides

This program is helpful when banks see aquaculture equipment as risky or hard to put a value on.

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Aquaculture Loan Program in Nova Scotia

Nova Scotia has its own Aquaculture Loan Program through the Department of Fisheries and Aquaculture.

What the program supports

• Starting, growing, or buying an aquaculture business
• Buying seed stock
• Equipment and infrastructure
• Buying land
• Buying an existing aquaculture operation

Who is eligible

• Aquaculture businesses in Nova Scotia
• Both new and existing businesses can apply

Funding type

• Repayable loans with different interest rates and payback schedules
• Terms depend on how risky the project is and if it looks financially sound

This program is often used for bigger projects that are too costly for your own savings but don’t fit federal grant programs.

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How the Application Process Usually Works

The details may change by province, but the steps are mostly the same across Atlantic Canada:

1. Talk with the provincial department or loan board
2. Submit your business plan, including financial statements and cash-flow forecasts
3. Assessment of your assets and risks (like boats, equipment, and stock)
4. Loan or guarantee approval, with set payback terms
5. Ongoing progress reports while the loan is active

These programs focus on your ability to repay the loan. Strong financial records are more important than things like innovation or job creation.

If you want to see which aquaculture funding programs fit your business, GrantHub’s eligibility matcher can help you filter options by province and business stage.

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How These Loans Compare to Grants

Aquaculture loans and loan guarantees are different from grants in important ways:

• You must pay back the money you receive
• Decisions are based on your financial strength, not a competition
• Applications are often processed faster
• Sometimes you can combine loans with grants, but there are limits on total government funding

For more details, see also:
Repayable vs Non-Repayable Business Funding in Canada: Program Examples Explained

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Common Mistakes to Avoid

Thinking these are grants
These programs give you money you have to repay. Treat them like serious loans, not free cash.

Applying without clear cash-flow forecasts
Loan boards want to see how you’ll pay the money back. Weak or missing forecasts are a common reason for rejection.

Overestimating what your assets are worth
The province often values used boats and equipment lower than you expect.

Ignoring stacking rules
You might be able to combine loans and grants, but there is usually a cap on how much government help you can get.

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Frequently Asked Questions

Q: Are aquaculture loans and loan guarantees taxable?
Loan money is not counted as taxable income. But interest you pay and asset depreciation can affect your taxes.

Q: Can I buy a used aquaculture boat with these loans?
Yes. New Brunswick’s program covers both new and used boats, if they pass the assessment.

Q: How much funding can I get?
There’s no set maximum. The amount depends on your project, asset values, and your ability to pay it back.

Q: Can I combine these loans with other government funding?
Sometimes, yes. It depends on the program’s rules and the total limit for government support.

Q: Are these programs offered outside Atlantic Canada?
These programs are only in New Brunswick and Nova Scotia, but other provinces may have their own aquaculture financing options.

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Next Steps

Aquaculture loans and loan guarantees are useful when grants aren’t enough or don’t cover big equipment costs. The right choice depends on your province, what assets you need, and your financial situation.

GrantHub tracks all active aquaculture loans, guarantees, and grants across Canada—check which ones might fit your business and funding needs. You can also read more with guides like What expenses are covered by fisheries science and innovation grants in Canada? and How to Use the Business Navigators Program in Atlantic Canada.

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