Business Investment Program — Term Loan
Highlights
This program is designed for businesses like yours, offering a unique opportunity to secure financing at favorable terms. You can receive a repayable term loan at the Bank of Canada interest rate plus 0.5%, which is highly competitive compared to other financing options. This can significantly reduce your borrowing costs and improve your cash flow.
Key Benefits:
- Access to capital: Helps you make essential purchases or investments.
- Support for growth: Ideal for businesses looking to expand into new markets.
- Leverage private investments: Increases your capital base, making it easier to attract additional private-sector investments.
Why Apply?
- Flexible financing: Complements funding from conventional sources, ensuring you have the necessary capital.
- Strategic support: Tailored for businesses in growth sectors, enhancing your potential for success.
- Ease of qualification: Designed for small and medium-sized enterprises, making it accessible and straightforward to apply.
By securing this loan, you can undertake new projects, expand your operations, and ultimately drive your business forward.
Financing Details
Type of Financing:
- 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.
Eligible Expenses:
- Equipment purchases
- Leasehold improvements
- Intangible assets
- Working capital
Use of Funds:
- Funds can be used to complement funding from conventional sources.
- Intended to increase the capital base of businesses, allowing them to leverage new private-sector investments.
Restrictions on Use of Funds:
- Funds cannot be used for personal expenses.
- Funds cannot be used for activities outside the strategic growth sectors identified by Industry, Energy and Technology.
Fees:
- No specific fees are mentioned in the program details. Please consult with the IET office near you for further information on any potential fees.
Qualifications
- Must be a small or medium-sized enterprise (SME).
- Must be based and operating in Newfoundland and Labrador.
- Must have fewer than 100 employees.
- Must have less than $10 million in sales.
- Must demonstrate the ability to undertake the work identified in the project proposal.
- Must demonstrate the ability to access the financial capital required to complete the project.
- Must operate in a strategic sector as defined by Industry, Energy and Technology (IET).
Must be in good standing with the Government of Newfoundland and Labrador.
Disqualifications:
- Businesses not based or operating in Newfoundland and Labrador.
- Businesses with 100 or more employees.
- Businesses with $10 million or more in sales.
- Businesses unable to demonstrate the ability to undertake the project work.
- Businesses unable to demonstrate access to the required financial capital.
- Businesses not operating in a strategic sector as defined by IET.
- Businesses not in good standing with the Government of Newfoundland and Labrador.
Description
The Business Investment Program offers repayable term loans to help your business grow. You can access funds at the Bank of Canada interest rate plus 0.5%. This low-interest loan can be a game-changer for your business.
You can use the money to:
- Expand your business operations
- Enter new markets
- Increase your capital base to attract private-sector investments
The program is designed to complement other funding sources, ensuring you have the financial support needed to succeed.
Repayment terms are flexible, making it easier for you to manage your finances while focusing on growth. This program is a valuable opportunity to boost your business and achieve your goals.
Program Steps
Gather Required Documentation:
- Business plan
- Financial statements (balance sheet, income statement, cash flow statement)
- Proof of good standing with the Government of Newfoundland and Labrador
- Documentation demonstrating the ability to undertake the project
- Evidence of access to financial capital
Complete the Application Form:
- Download and fill out the "Application for Commercial Programs" form.
- Ensure all sections are completed accurately.
Consult with IET Office:
- Contact the Industry, Energy and Technology (IET) office near you for guidance.
- Discuss any questions or concerns regarding your application.
Submit the Application:
- Submit the completed application form along with the required documentation to the IET office.
- Ensure all documents are properly organized and attached.
Review and Follow-Up:
- Wait for the IET office to review your application.
- Be prepared to provide additional information or clarification if requested.
Approval and Loan Agreement:
- Upon approval, review the loan agreement terms, including interest rates and repayment schedule.
- Sign the loan agreement to finalize the process.
Receive Funds:
- Once the agreement is signed, the funds will be disbursed to your business.
- Use the funds as outlined in your project proposal.