Yukon Venture Loan Guarantee Program
Highlights
This program is designed for businesses like yours. It offers a unique opportunity to secure financing with the backing of the Government of Yukon. By participating, you can access loans with a government guarantee, making it easier to get the funding you need.
Why Apply?
- Government-backed guarantee: This reduces the risk for lenders, increasing your chances of approval.
- Flexible loan amounts: Borrow between $10,000 and $100,000.
- Favorable terms: Repayment terms extend up to 6 years, giving you ample time to manage your finances.
What's in it for You?
- Lower risk: With the government guaranteeing 65% of the loan, lenders are more likely to approve your application.
- One-time fee: A simple 1.5% fee of the guarantee amount, payable when the guarantee is issued.
- Ease of qualification: If your business is registered in Yukon and meets the basic criteria, you are likely to qualify.
By getting approved, you can invest in your business's growth and expansion with confidence, knowing you have the support of the government. This program makes it easier to secure the financing you need to take your business to the next level.
Financing Details
Type of Financing: Loan Guarantee
Repayment Term and Interest Rates:
- The repayment term is up to 6 years.
- Interest rates are determined by the participating financial institution.
Eligible Expenses:
- Business start-up costs.
- Business expansion costs.
- Equipment purchases.
- Leasehold improvements.
- Working capital.
Use of Funds:
- Funds cannot be used for personal expenses.
- Funds cannot be used to refinance existing debts.
Fees:
- One-time fee of 1.5% of the guarantee amount, payable when the guarantee is issued.
Qualifications
- Must be a new business start-up or an expanding business in Yukon.
- Must have less than $5 million in gross revenue.
- Must have fewer than 100 employees.
- Must be registered in Yukon.
Must pay Yukon corporate taxes.
Disqualifications:
- Businesses not registered in Yukon.
- Businesses not paying Yukon corporate taxes.
- Businesses with $5 million or more in gross revenue.
- Businesses with 100 or more employees.
Description
This program helps your business by guaranteeing part of your loan from a financial institution. You can get a loan guarantee of up to $100,000, which means the government will cover 65% of the loan amount if you can't pay it back. This makes it easier for you to get a loan from a bank.
You can use this money for various business needs, whether you are starting a new business or expanding an existing one. This could include buying new equipment, renovating your space, or other investments to grow your business.
The repayment term is up to 6 years, giving you ample time to pay back the loan. There is a one-time fee of 1.5% of the guarantee amount, which you pay when the guarantee is issued. This program provides a safety net, making it a great opportunity to secure funding and grow your business.
Program Steps
Contact the Economic Development Office: Reach out to the Economic Development Office to confirm your project qualifies. You can email [email protected] or call 867-456-3803 or toll-free in the Yukon at 1-800-661-0408, ext. 3803.
Visit a Participating Financial Institution: Go to a participating financial institution to get more information and start your application process.
Prepare Required Documentation: Gather the necessary documents to support your application. These include:
- Business registration documents
- Financial statements
- Business plan
- Proof of Yukon corporate tax payments
- Details of the intended use of funds
Complete the Application Form: Fill out the application form provided by the financial institution. Ensure all sections are completed accurately.
Submit Your Application: Submit the completed application form along with the required documentation to the financial institution.
Pay the One-Time Fee: Be prepared to pay the one-time fee of 1.5% of the guarantee amount when the guarantee is issued.
Await Approval: The financial institution will review your application and documentation. They may contact you for additional information or clarification.
Finalize Loan Terms: Upon approval, discuss and finalize the loan terms, including the interest rate, repayment schedule, and any associated fees.
Receive Loan Funds: Once everything is agreed upon, the loan funds will be disbursed, allowing you to proceed with your business project.