Business Investment Program—Equity Investment
Highlights
This program is designed to support your business by providing term loans at competitive interest rates. You can access funds at the Bank of Canada interest rate plus 0.5%, making it a cost-effective option compared to other financing sources. This program is ideal for businesses in strategic growth sectors or those with export potential.
Key Benefits:
- Repayable term loans to boost your capital base.
- Leverage new private-sector investments with the additional funding.
- Expand into external markets with financial assistance.
By being approved, you can enhance your business's financial stability and growth potential. The application process is straightforward, and support is available to help you through it. This program is a valuable opportunity to secure the funding you need to take your business to the next level.
Financing Details
Type of Financing: Term Loan
Interest Rate:
- The interest rate is the Bank of Canada rate plus 0.5%.
- Interest rates may change; consult the IET office for current rates.
Eligible Expenses:
- Funds can be used for strategic growth projects.
- Expenses must align with the project's proposal and objectives.
- Can be used to leverage new private-sector investments.
Ineligible Expenses:
- Funds cannot be used for non-strategic sectors.
- Personal expenses or non-business-related costs are not allowed.
Fees:
- No specific fees are mentioned for the application or processing of the loan.
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 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 term loans to small and medium-sized enterprises (SMEs) in strategic growth sectors. This program is designed to help businesses like yours grow and expand, especially if you have export potential.
You can borrow funds at the Bank of Canada interest rate plus 0.5%. These loans are repayable, and the interest rates may change, so it's best to check with the local IET office for the latest rates.
Key benefits for your business:
- Increase your capital base: Use the loan to boost your business’s financial strength.
- Leverage new private-sector investments: Attract additional investments by demonstrating a solid capital foundation.
- Expand into new markets: If you’re looking to enter or grow in external markets, this program can provide the necessary financial support.
This program is a great opportunity to secure funding that complements conventional sources, ensuring your business has the resources needed to succeed and grow.
Program Steps
Gather Necessary Documentation: Prepare the following documents to support your application:
- Business plan
- Financial statements (last three years)
- Project proposal
- Proof of ability to access financial capital
- Proof of good standing with the Government of Newfoundland and Labrador
Complete the Application Form: Fill out the "Application for Commercial Programs" form. You can choose either the standard form or the fillable PDF version.
Review Program Details: Ensure you understand the terms and conditions of the program, including the interest rates and repayment terms.
Contact Industry, Energy and Technology Office: Reach out to the nearest Industry, Energy and Technology office for assistance with your application or to clarify any questions you may have.
Submit the Application: Send your completed application form along with the required documentation to the Industry, Energy and Technology office.
Await Application Review: The office will review your application to ensure it meets all criteria and aligns with the program's objectives. Be prepared to provide additional information if requested.
Approval and Loan Agreement: If your application is approved, discuss the final loan terms, including the interest rate and repayment schedule. Once agreed upon, sign the loan agreement.
Receive Funds: Upon signing the loan agreement, the funds will be disbursed to your business, allowing you to proceed with your project.