The Honourable Steve Crocker, Minister of Industry, Energy and Technology, today announced the official launch of the Restaurant Loan Guarantee Program.

The Restaurant Loan Guarantee Program is targeted toward businesses operating full-service restaurants throughout Newfoundland and Labrador that require emergency debt restructuring to protect the long-term operation of the business.

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 in the backgrounder below or at www.gov.nl.ca/iet/funding/restaurant-loan-guarantee-program/.

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 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.

In recent budgets, the Provincial Government improved commission discounts for provincial producers of craft beer, wine, spirit, and cider.

Budget 2025 included up to $10 million in guarantees available for a restaurant loan guarantee program to assist locally owned restaurants. Budget 2025 also included $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.

This year, the Provincial Government 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 Budget 2023.

Quotes
“Restaurants provide an important service throughout the province, are anchor assets for the tourism industry and are important employers in communities in both rural and urban centres. This program will provide much needed support to this important industry to help with long-term viability.”
Honourable Steve Crocker
Minister of Industry, Energy and Technology

“Locally owned restaurants are an essential part of our tourism experience, offering a taste of Newfoundland and Labrador’s culture, hospitality, and culinary excellence. This program will help ensure that these businesses remain strong and resilient, supporting not only the tourism sector but also the communities they serve. I’m pleased to see this support being made available to help restaurants navigate financial challenges and continue contributing to our province’s vibrant tourism and hospitality landscape.”
Honourable Fred Hutton
Minister of Tourism, Culture, Arts and Recreation

“As the tourism industry association for Newfoundland and Labrador, Hospitality NL welcomes this important announcement. It 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.”
Craig Foley
CEO, Hospitality Newfoundland and Labrador

“We are pleased to see the restaurant sector receive this type of support. Restaurants throughout Newfoundland and Labrador play a key role in our communities and our economy – this type of assistance will ensure that they continue to thrive and that residents and tourists can continue to enjoy them.”
AnnMarie Boudreau
CEO, The Board of Trade

-30-

Learn more
Restaurant Loan Guarantee Program

Hospitality Newfoundland and Labrador

The Board of Trade

Follow us on X @GovNL and @IET_GovNL

Follow us on Bluesky

Like Government of Newfoundland and Labrador and Industry, Energy and Technology NL

BACKGROUNDER

Restaurant Loan Guarantee Program (RLGP) Eligibility Guidelines and Program Delivery
The RLGP is targeted toward businesses operating full-service restaurants throughout Newfoundland and Labrador that require emergency debt restructuring to protect the long-term operation of the business.

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.

Financing must be provided by financial institutions in the form of a term loan with a maximum amortization of 10 years and bearing interest of no more than the Commercial Prime Rate plus two per cent.

Program Eligibility

Applicants must meet the following criteria to be eligible:

• Must be a corporation, partnership or sole proprietorship that owns and operates one or more restaurants in the province. Assistance can be provided to only one restaurant per corporation or sole proprietorship.
• Restaurant must be a full-service dining establishment where guests are seated by staff, waitstaff take orders, and food and drinks are delivered to the table.
• Owner(s) must be Canadian citizens or permanent residents, and residents of the province.
• Must demonstrate with documentation that debt restructuring is urgently needed to avoid a shutdown of the business, e.g., demand letter from a creditor dated before program launch.
• Must indicate how the requested debt relief creates a path to sustainability of the business.
• Restaurant must have no more than 100 employees and less than $10 million in annual revenues.
• Must have been in operation for a minimum of 36 months prior to date of application.
• Restaurant location is generally in operation year-round, but those operating seasonally may also be considered if they meet the other eligibility criteria.
• Mixed revenue businesses operating a full-service restaurant may be considered on a case-by-case basis subject to the share of revenue derived from the restaurant, and provided that guaranteed financing is directly targeted toward the restaurant side of the business.

The following businesses are ineligible under the program:

• Franchises, mobile preparation, snack bars/take outs, canteens, cafeterias, public markets, retail food stores, wholesale, church hall/banquet hall, bakeries, and catering operations.

Eligible Debts and Uses of Guaranteed Loans

The following debts are eligible for restructuring/refinance under the program:

• Accounts payable items that are least 90 days past due as of the date of program launch, to include:
  • Rent/lease costs.
  • Maintenance costs.
  • Operational costs such as wages, utilities and insurance.
• Past due amounts owing on Canada Emergency Business Account loans or to the Canada Revenue Agency.

The following debts are ineligible for support under the program:

• Accounts payable items fewer than 90 days past due as of program launch.
• Accounts payable items that become 90 days past due after program launch.
• Debts associated with capital improvement costs.
• Shareholder loans and equity.
• Existing lines of credit, including credit cards.
• Debt owing to related parties/companies, including to friends and family.
• Any debts or costs incurred after the date of program launch.