BDIC Loans/Deferments

Last modified: 
Fri, 05/29/2020 - 13:48

BDIC Working Capital Loans

The Government of the Northwest Territories (GNWT) is offering low interest loans to NWT businesses through the NWT Business Development and Investment Corporation (BDIC) during the COVID-19 health pandemic. Applications to this initiative can now be made at any time, and loans will be processed as they are received.

Loans of up to $25,000 (or more if need is clearly addressed) are being made available to qualified businesses at a rate of 1.75%. Loans will be amortized for up to five years with options for payment deferment for 3 months upon request.

To qualify, you are required to provide:

  • Demonstration of financial need for a 30 - 60 day period due to cash flow issues resulting from the COVID-19 crisis, backed up by supporting documents such as: 
    • Monthly expenses for the operation of your business for the next 30 days
    • Information which shows a change in revenues to your business within the last 60 days;
  • A completed loan application form;
  • A summary of other business relief that you have applied for or received due to COVID-19; 
  • A valid Tourism Operator License if you are a Tourism Operator;
  • A copy of your valid driver’s license; and
  • A copy of your valid NWT business license.

*The personal credit of the owner will be considered as part of the loan review process and the business owner should be in good financial standing with all GNWT Departments.

If your business had only previously applied for a relief loan to cover 30 days of your operations, you may apply a second time for an extended period.

Loans are available to non-resident businesses that have made a meaningful investment in the NWT, have NWT employees, and support local businesses. It is incumbent upon non-resident businesses to demonstrate their investment in and support of the NWT economy. 

To apply:

Download and complete the loan application form.

Submit your application form, with supporting documents, to your regional Department of Industry Tourism and Investment regional office.  Please ensure you demonstrate your need as a result of the COVID-19 pandemic.

NOTE: NWT Businesses are encouraged to pursue loans under the federal government’s Canada Emergency Business Account and/or CanNor’s Northern Business Relief Fund. These programs can offer similar funding without requiring you to assume as much debt.    

Consistent with public health guidelines to self-isolate, applications can only be accepted via email. Your application and supporting documents should be sent, by e-mail, to the appropriate ITI contact listed below:

Please Note:

Priority will be given to businesses with fewer than 20 employees, but the GNWT will consider applications from businesses with up to 50 employees.

This initiative is considered as an initial response to the current crises. While loan applications should focus on cash flow requirements for 30 to 60 days, the GNWT is interested in hearing of the longer-term cash flow challenges facing NWT businesses, should the current crisis persist.

Questions relating to this initiative can be directed to: ITIBusinessinquiries@gov.nt.ca

 

BDIC Deferred Loan Payments

From April 1 - September 30, 2020, clients (borrowers) of the Business Development and Invest Corporation (BDIC) are able to reduce or defer up to three months of loan payments without penalty or additional interest charges.

Criteria:

Businesses are automatically approved and not required to demonstrate financial hardship or impacts resulting from the COVID-19 crises.

To apply:

Send a letter (e-mail is acceptable) to your regional Department of Industry Tourism and Investment regional office stating that you want to reduce or suspend your payments and include the three month time period in which you need it to take effect.

(Note: Consistent with public health guidelines to self-isolate, applications can only be accepted via email.) Your application should be sent, by e-mail, to the appropriate ITI contact listed below:   

Please Note:

Requests for payment reductions or deferments must be received by the ITI office no later than the 24th day of the month prior to the payment date.  

Your ITI regional office will transmit all requests to the BDIC who will respond to you by email to confirm that your request has been received and processed.

Following the payment deferment or reduction period, existing loan payment schedules will resume along with existing terms and conditions.

Questions relating to this program can be directed to: ITIbusinessinquiries@gov.nt.ca