Fredericton entrepreneurship hub Planet Hatch is opening a new co-working and resource-sharing facility in downtown Fredericton -- the result of a deal with concert and event venue The Cap.

Based out of The Cap’s 362 Queen Street location, The Nest’s member companies will have access to the same support programs as the businesses based out of Planet Hatch’s original facility.

Planet Hatch’s main office is in Knowledge Park on Fredericton’s outskirts, just over a 10-minute drive from The Cap, according to Google Maps. The Nest will also be a six-minute drive from the University of New Brunswick campus.

“Having an incubation centre that is located where entrepreneurs in the creative sector, in the retail sector actually are and actually live day-to-day... will enable those entrepreneurs to find resources to help them and their businesses where they are operating,” said Planet Hatch Director Adam Peabody.

He hopes The Nest will increase Planet Hatch’s visibility among aspiring entrepreneurs who may not be familiar with the local support ecosystem. The Nest’s location is also meant to make it more accessible to young entrepreneurs and students who may feel intimidated by the prospect of visiting the main office.

Peabody added that the creation of The Nest was prompted partly by a space shortage at the main Planet Hatch building, which has been worsened by pandemic-related social distancing requirements.

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The building can normally accommodate 50 to 60 people, which equates to about 25 companies. With government-mandated six-foot distancing, that number is roughly halved, although entrepreneurs not physically in the office can still access other membership benefits.

“A good problem for us to have is that we’ve been pretty much maxed out at capacity for the last year and a half,” said Peabody.

Planet Hatch was founded in 2013 and about 250 companies have since passed through its main facility.

The Nest will be able to hold 12 people with social distancing and about 20 once regulations are eased. Member companies will also have access to the main Planet Hatch office space.

Memberships at either venue cost $200 per month for a company’s first employee and $75 for each additional staff member, up to five. For teams larger than five, membership terms are negotiated on a case-by-case basis.

The membership fees cover access to workstations, advising sessions from Planet Hatch’s business counsellor, participation in the incubator’s accelerator programs and access to two potential funding sources: a loan program backed by the Atlantic Canada Opportunities Agency and a grant program from the province.

The Impact Loan fund offers startups loans of up to $25,000 with annual interest rates of five percent, which Peabody believes are the lowest on the market.

The Seed Grant Fund also provides up to $25,000 of funding, but application criteria are more stringent; applicant companies must show higher growth and export potential.

“Given that it is free money, we want to see a higher level of potential economic impact from the business,” said Peabody.

The Cap is a previous client of Planet Hatch, which Peabody said made the deal a natural fit. In a statement, Planet Hatch said that negotiations began when executives from both organizations met at the Strategic Executives Program offered by the University of New Brunswick’s Wallace McCain Institute.

The Nest will open Aug. 31 and interested companies can apply here.