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The
Small and Medium-sized Enterprise Fund provides
term loans and equity investments to small and medium-sized businesses in
strategic growth sectors with special emphasis on value-added manufacturing,
information technology, aquaculture, bio-technology, marine services, agrifoods
and tourism, where local competitive impact is not an issue. The fund will also
target businesses which have export potential and need assistance to enter or
expand in external markets.
Funds are provided to
complement funding from conventional sources where a need has been demonstrated.
The funding is also intended to increase the capital base of businesses allowing
them to lever new private-sector investments.
Program
Activities
Loans may be used for start-up, modernization, or expansion of a business
venture and may include:
-
purchase of fixed assets
including land, building, and equipment, excluding on-road vehicles,
snowmobiles and ATV's;
-
construction and/or
expansion or renovation of building(s) including leasehold improvements;
-
working capital for
growth; and
-
the purchase of
intangible assets where such assets form an integral part of a business
venture (e.g. patents, technology rights).
Eligible
Applicants
Loan applications may be considered from a proprietor, partnership, corporation,
co-operative or non-profit commercial organization operating within the
province. All types of business and sectors are eligible, except real estate
services, retail, service and wholesale operations, beverage rooms and taverns.
The business applying must demonstrate:
-
leveraged funding
including client commitment;
-
market potential;
-
strong experienced
management;
-
net economic benefit / job
creation;
-
the potential for
viability, sustainability and growth;
-
that it is unable to
obtain sufficient funding under reasonable terms and conditions from
conventional sources; and
-
that the funding support
is essential to the success of the business.
Available
Funding
Term Loan: Up to $250,000 total funding is
available per applicant and affiliated / associated companies at Department's
base rate plus 3% interest with a minimum applicant investment of 20% of project
costs.
Equity Loan: Up to $50,000 per year; maximum $100,000 in the
aggregate per applicant and affiliated / associated companies at 5% interest
provided on a matching basis with "new" capital investment in the form of cash
or equivalent equity.
Ineligible
Activities
Funds cannot be used:
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to retire existing
applicants’ / shareholders’ investment;
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for debt consolidation,
refinancing or purchase of existing operations;
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to assist a business to
gain market share from other local companies; and / or
-
result in a local market
becoming further fragmented.
To Find Out More
For information and assistance,
contact the INTRD office nearest you.
A business plan is required to support all funding requests.
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