newfoundland restaurant loan guarantee program

What Is Newfoundland & Labrador’s Restaurant Guarantee Program​

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Thomas Campbell

September 8th, 2025

Running a restaurant in Newfoundland and Labrador has always been challenging, but rising costs, overdue debts, and pandemic-related impacts have left many operators in a tight financial position. To help, the Government of Newfoundland and Labrador has launched the Restaurant Loan Guarantee Program (RLGP) – a limited-time initiative offering restaurants a path to restructure debt and protect long-term operations.

If you’re a restaurant owner wondering whether this program can help, here’s what you need to know, how to apply and how to get approved.

 Summary

  • The Newfoundland and Labrador Government has launched the Restaurant Loan Guarantee Program (RLGP) to help full-service restaurants restructure debt and protect long-term operations.
  • The program provides loan guarantees of up to $100,000, fully backed by the province, with repayment terms up to 10 years at commercial prime plus 2%.
  • Eligible restaurants must have fewer than 100 employees, under $10 million in revenue, and at least 36 months in operation, with ownership by NL residents who are Canadian citizens or permanent residents.
  • Funding can be used for overdue CRA debt, CEBA loans, accounts payable, and rent/lease arrears, but not for new debts, credit cards, mortgages, or capital assets.
  • To improve approval chances, operators should submit complete financial documents, demonstrate urgent need and sustainability, and apply quickly, as applications are first-come, first-served until $10 million in guarantees are allocated.

What Is the Restaurant Loan Guarantee Program?

The RLGP is designed to make emergency financing more accessible for full-service restaurants across Newfoundland and Labrador. Instead of lending money directly, the province guarantees loans of up to $100,000 issued by financial institutions. This guarantee reduces the risk for banks and makes it easier for restaurants to secure funding.

Key program features include:

  • Maximum loan guarantee: $100,000 per restaurant
  • Repayment term: Up to 10 years
  • Maximum interest rate: Commercial Prime + 2%
  • Total program funding: $10 million in loan guarantees available province-wide
  • Deadline: Applications must be submitted within 90 days of the program launch (September 3, 2025) or until all funds are allocated

The program focuses on emergency debt restructuring – meaning loans must directly address overdue obligations, not future expenses or new investments.

Who Is Eligible?

To qualify, your restaurant must meet specific requirements:

  • Type of business: Full-service restaurants (franchises, food trucks, bakeries, catering operations, and take-out only businesses are ineligible)
  • Size: Fewer than 100 employees and under $10 million in annual revenue
  • Time in operation: At least 36 months
  • Ownership: Majority owners must be residents of Newfoundland and Labrador and Canadian citizens or permanent residents
  • Financial need: Must demonstrate that debt restructuring is urgently required to avoid closure and that financing will create a path to sustainability

Mixed operations (such as hotels with restaurants) may be considered if the financing is strictly tied to the restaurant side of the business.

What Expenses Can Be Covered?

The program targets overdue financial obligations that put your restaurant at risk. Eligible uses include:

  • Past-due Canada Revenue Agency (CRA) debt
  • Outstanding Canadian Emergency Business Account (CEBA) loans
  • Accounts payable (goods, maintenance, operations) at least 90 days overdue
  • Rent or lease payments at least 90 days overdue

Ineligible uses include: new debts, credit card balances, mortgages, capital assets, or payments to related parties (e.g., shareholders, family).

How To Get Approved

 

Since the RLGP is competitive and reviewed on a first-come, first-served basis, restaurants need to strengthen their applications to increase the chance of approval. Here are the key steps operators should take:

  1. Demonstrate Urgency and Viability:
    Clearly show why debt restructuring is urgently required (e.g., risk of closure without support).
    Provide a clear plan showing how the financing will lead to long-term sustainability.

  2. Prepare Complete Financial Documentation
    Gather three years of financial statements or tax returns, plus a current balance sheet.
    Include an aging of accounts payable and proof of overdue debts (invoices, CRA notices, bank statements).
    Develop a two-year forecast of revenues and expenses to show repayment potential.

  3. Highlight Compliance and Stability.
    Ensure all operating licenses (food, liquor, etc.) are current.
    If you run a mixed operation (e.g., hotel with restaurant), separate restaurant-specific financials.

  4. Submit a Strong, Well-Organized Application
    Double-check that all required documents are included before submitting.
    Missing paperwork may delay or weaken your application.

  5. Engage with Your Financial Institution Early
    Even before approval, talk to your bank about your situation.
    Once you receive the eligibility letter, having a relationship already established can speed up loan processing.

  6. Apply Quickly
    With a limited $10 million in guarantees available, applications are reviewed in order received.
    Submitting early increases your chances of being funded before the program cap is reached.

How to Apply

Applications are reviewed on a first-come, first-served basis, so restaurants are encouraged to act quickly.

Step 1: Gather Required Documentation

  • Government-issued ID and proof of citizenship/permanent residency
  • Proof of overdue accounts (invoices, CRA/bank statements, final notices)
  • Three years of income and expense statements (tax returns acceptable)
  • Recent balance sheet (if incorporated)
  • Two-year revenue and expense forecast
  • Copies of food, liquor, and operating licenses
  • Aging of accounts payable (if available)

Step 2: Access & Fill Out The Application HERE

Step 3: Submit Your Application

Send your completed application and documents to:

Email: RLGP@gov.nl.ca

Mail: Restaurant Loan Guarantee Program
Business Analysis Division
Department of Industry, Energy and Technology
50 Elizabeth Ave., 3rd Floor
P.O. Box 8700
St. John’s, NL A1B 4J6

Step 4: Await Eligibility Letter

If approved, you’ll receive a letter confirming your eligibility and maximum guarantee amount. Take this letter to your financial institution, which will then decide whether to finance the loan.

Conclusion

Newfoundland and Labrador’s restaurant sector is more than a business, it’s a cornerstone of tourism, community, and culture. The RLGP offers locally owned restaurants a chance to stabilize, restructure, and keep serving customers for years to come.

If your restaurant is carrying overdue debt and struggling with cash flow, this program could be the financial reset you need. But remember: funding is limited, and applications are first-come, first-served. Acting quickly may make the difference between securing support or missing out.

FAQ

Only full-service restaurants in Newfoundland and Labrador with fewer than 100 employees, less than $10 million in annual revenue, and at least 36 months of operation are eligible. Owners must be NL residents who are Canadian citizens or permanent residents. Franchises, food trucks, bakeries, and catering businesses are not eligible.

The program is designed for overdue debt restructuring. Eligible expenses include past-due CRA debt, outstanding CEBA loans, accounts payable that are at least 90 days overdue, and rent or lease payments overdue by at least 90 days. New debts, capital purchases, mortgages, or payments to related parties are not covered.

Restaurants first submit an application with all required documents to the Department of Industry, Energy, and Technology. If approved, the restaurant receives an eligibility letter confirming the maximum loan guarantee amount. This letter can then be taken to a financial institution, which makes the final decision on whether to finance the loan.

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