Government launches restaurant loan guarantee program

The provincial government has launched the Restaurant Loan Guarantee Program.

The program is targeted toward businesses operating full-service restaurants throughout the province that require emergency debt restructuring to protect the long-term operation of the business.

It will offer loan guarantees of up to $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.

The Restaurant Loan Guarantee 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 and will be reviewed 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.