Business Creation or Expansion (Schedule B - Part 1)

Eligibility Criteria

Northwest Territories businesses and individual entrepreneurs.

Summary

Maximum Contribution

With the Minister's concurrence, maximum assistance available is $100,000.

Limitations

• Maximum $25,000 per person year of employment to a maximum of $100,000
• This program is limited to items that can be capitalized on financial statements
• Funds cannot be used for purchasing an existing business if no expansion or additional employment is planned
• It is not to be used for re-financing assets purchased prior to the application, unless this restriction is waived by the approving authority
• This program is not for recurring expenses or activities that may disrupt the market
  
  What is a person year?
  A person year is defined as a job where the employee receives at least $10,000 per year in the case of arts and crafts or renewable resources harvesting business, or 40 weeks of employment in the case of all other businesses.
  
  Maximum Contribution to Project Costs
  Level 1 Communities 30%
  Level 2 Communities 50%
  Level 3 Communities 70%

Eligible Costs

• Limited to items that may be capitalized on financial statements
• Working capital for buildings and land associated with the project
• Equipment and leasehold imrovements
• Site development costs
  
  Information Required

• A business plan
• Detailed project budget
• Price quotes
• Financial projection/debt servicing capacity
• Management resumes
• Feasibility study (if available), or complete supporting documentation
• Business plan must include a three year projected financial statement (with income and cash flow statement and balance sheets)  
• Names of any outside services providing assistance to the project, including estimated fees and costs for technical assistance, legal and financial assistance

You may be asked to provide other information related to the proposal that the regional panel or Regional Superintendent of the Department of Industry, Tourism and Investment may deem necessary.

Additional Notes
An independent audit is required for contributions in excess of $50,000.

Northwest Territories Contact(s):
Business Development and Investment Corporation
#701, 5201-50th Ave
7th floor, NorthwesTel Bldg.
Yellowknife, Northwest Territories  X1A3S9
Telephone: (867) 920-6455
Fax: (867) 765-0652
Hours of operation: 8:30 - 5:00 Monday - Friday