Type of Program:
Loan & Investment
The Business Investment Program provides term loans and equity investments to Newfoundland and Labrador SMEs in strategic growth sectors as identified by Industry, Energy and Technology (IET). 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:
The applicant must:
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.
The applicant must submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in his area.
The applicant must submit:
For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.
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.