Business Investment Fund – Business Investment Program

Amount:

$500,000

Type of Program:

Loan & Investment

Description:

The Business Investment Program provides term loans and equity investments to Newfoundland and Labrador SMEs in strategic growth sectors as identified by TCII. The fund is also available to businesses which have export potential and require assistance to enter or expand in external markets.

Funds are provided to complement funding from conventional sources, where a need has been demonstrated, and are also intended to increase the capital base of businesses allowing them to leverage new private-sector investments.

Comments on Funding:

Funding is in the form of repayable term loans to a maximum amount of $500,000 per government fiscal year at the department's base rate of 3%.

Equity funding is in the form of redeemable preferred shares to a maximum of $500,000 per project and a maximum aggregate of $1 million is available.

When It Ends:

Ongoing

Deadline:

March 31

Eligibility:

The applicant must:

be a SME based and operating in Newfoundland and Labrador having fewer than 100 employees and less than $10 million in sales,
demonstrate its ability to undertake the work identified in the project proposal,
demonstrate its ability to access the financial capital required to complete the project,
operate in a strategic sector as defined by TCII,
be in good standing with the Government of Newfoundland and Labrador.

Strategic sectors: Advanced Technologies, Aerospace, Agri-foods, food and beverage, Aquaculture, Biotechnology and Life Sciences, Craft, Gift and Apparel, Energy, Environmental Industries, Fishery (excludes fish harvesting and primary processing), Forest Products, Information and Communications, Technology, Manufacturing, Ocean Technology, Mineral Resources, Natural Stone, and Tourism and Cultural Industries.

Application Steps:

The applicant must submit a signed, completed application with supporting documentation to the office of Tourism, Culture, Industry and Innovation (TCII) in his area.

Documentation Needed:

The applicant must submit:

the application form,
a business plan and project summary & Benefits,
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment, if an existing business,
a copy of the Articles of Incorporation,
a Personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
a Cash Flow Statement and pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if an existing business,
Income Statement and Opening Balance Sheet, a Cash Flow Statement and pro forma statements for the next two years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if a new business,
any supplementary information that may be relevant to his operation.

Other Things to Note:

The Business Investment Fund provides a source of funding to business and economic sectors that responds to the changing needs of enterprises. The Business Investment Fund is comprised of two components: the Business Investment Program and the Business Development Support Program.

Program Contact:

Business Investment Fund

Application for Assistance

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