NWT Business Incentive Policy
Highlights
This program is a fantastic opportunity for your business. By registering, you gain a competitive edge in government procurement. The program offers a favourable bid adjustment for contracts, making it easier for you to win bids against non-registered companies. For contracts up to $1 million, you receive a 15% NWT and 5% local adjustment. For contracts over $1 million, the adjustment applies to the first $1 million, with additional adjustments for amounts over that.
What’s in it for you?
- Increased chances of winning government contracts
- Enhanced visibility in the official registry of approved northern businesses
- Support for economic growth and capacity within your business and the NWT economy
Qualifying for this program is straightforward. If your business is majority-owned within the NWT and you’ve been a resident for the past 12 months, you’re eligible. This program not only boosts your business but also contributes to a diversified and sustainable territorial economy.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed at 3.5% per annum.
Eligible Expenses:
- Equipment purchases
- Leasehold improvements
- Working capital
- Intangible assets such as software and patents
Ineligible Expenses:
- Personal expenses
- Real estate purchases
- Debt refinancing
Fees:
- Application Fee: $200
- Annual Maintenance Fee: $100
- Late Payment Fee: 2% of the overdue amount per month
Qualifications
- Must have majority ownership within the Northwest Territories (51%).
- Owner must have been a resident within the Northwest Territories for the past 12 months.
Must provide proof of residency, such as a copy of a driver’s license or T2222 Northern residency tax form.
Disqualifications:
- Businesses not owned and operated within the Northwest Territories.
- Owners who have not resided in the Northwest Territories for the past 12 months.
Description
The government spends over $260 million each year on products and services. This program is designed to give your business a competitive edge when bidding for government contracts. If your business is registered, you can receive favorable bid adjustments over non-registered companies.
For contracts up to $1 million:
- 15% adjustment for businesses in the Northwest Territories (NWT)
- 5% local adjustment
For contracts over $1 million:
- 15% NWT and 5% local adjustment for the first $1 million
- 1.5% NWT and 0.5% local adjustment for amounts over $1 million
This means your business can offer competitive bids and still win contracts, helping you grow and thrive in the local economy.
Program Steps
Download the Application Form: Visit the official website and download the BIP Application form and all necessary appendices.
Prepare Documentation: Gather the following documents:
- Proof of majority ownership within the NWT (e.g., business registration documents).
- Proof of residency within the NWT for the past 12 months (e.g., driver’s license or T2222 Northern residency tax form).
- Any additional documents listed in the application form appendices.
Complete the Application Form: Fill out the BIP Application form and all required appendices accurately. Ensure all sections are completed and all necessary signatures are obtained.
Submit the Application: Send the completed application form and all supporting documents to your regional Economic Development Officer or the appropriate office listed on the website.
Contact Regional Office: If you need assistance, contact your regional Economic Development Officer for guidance on the application process.
Review and Approval: Wait for the review and approval process. The Department of Industry, Tourism and Investment will assess your application and notify you of the outcome.
Maintain Registration: Once approved, ensure you maintain your registration by complying with all ongoing requirements and updating any necessary information as required by the BIP guidelines.