Business Investment Program
No fixed amount
Grant
Description:
The Business Investment Program provides term loans to small and medium-sized enterprises (SMEs) in strategic growth sectors as identified by Industry, Energy and Technology. 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:
The Business Investment Program is in the form of repayable term loans at the Bank of Canada interest rate plus 0.5%. Interest rates are subject to change. Please consult with the IET office near you for further information on interest rates.
Continuous Intake
Eligibility:
The applicant must:
1. be a SME based and operating in Newfoundland and Labrador having fewer than 100 employees and less than $10 million in sales,
2. demonstrate a desire to develop and grow by improving the operations of the business, investing in its people, and focusing on trade opportunities,
3. demonstrate its ability to undertake the work identified in the project proposal,
3. demonstrate its ability to access the financial capital required to complete the project,
4. operate in a strategic
Application Steps:
The applicant must submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in his area.
Documentation Needed:
The applicant must submit:
1. the application form,
2. a business plan and project summary & Benefits,
3. 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,
4. a copy of the Articles of Incorporation,
5. a Personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
6. 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,
7. 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,
8. any supplementary information that may be relevant to his operation.
For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.
Other Things to Note:
Economic Growth Strategy for Newfoundland and Labrador:
High-potential priority sectors: Ocean technology, Offshore Oil, Minning, Aquaculture and Fisheries, Tourism (https://www.gov.nl.ca/fin/files/publications-pdf-mck-final-report.pdf)
Sectors with the capacity to support the Province’s regional development objectives (“targeted opportunities”): Agriculture, Forestry, International education, Aerospace.
NFL Exports according to OEC website (https://oec.world/en/profile/subnational_can/newfoundland-labrador?redirect=true#:~:text=Trade%20In%20August%202022%2C%20the,Newsprint%20(C%2419M):
Petroleum oils, oils from bituminous minerals,… (C$ 7.5B), Iron ore, concentrate, not iron pyrites,… (C$ 2.36B), Iron ore, concentrate, not iron pyrites,unagglomerate (C$ 1.51B), Crabs, frozen (C$ 881M), and Nickel unwrought, not alloyed (C$ 856M) + Newsprint (among the top export in Aug. 2022)=> sectors: Energy, Fisheries & Aquaculture, Metallurgical Industry, Wood
About the author
Maurice