Nunavut Business Credit Corporation: Line of Credit
$1,000,000.00
Line of Credit
Description:
The Nunavut Business Credit Corporation provides working capital for a business to “smooth” cashflow requirements during an annual business cycle. A line of credit is expected to “revolve”.
Comments on Funding:
NBCC’s core business is to provide appropriate financing solutions to small and medium business enterprises in Nunavut who require between $150,000 and $1 million in loans or guarantees. NBCC does not offer grants or forgivable loans and cannot make equity investments.
Lines of credit must be renewed annually.
Continuous Intake
Eligibility:
Applicants must:
1. Be business enterpirse carrying on business in Nunavut that is:
a. A company or corporation registered or incorporated under the Business Corporations Act;
b. A co-operative association registered or incorporated under the Co-operative Associations Act;
c. A partnership for which a declaration is registered under the Partnership Act; or
d. A corporation incorporated under Part II of the Canada Corporations Act and commonly known as a community futures organization; or
e. An individual
2. Be eligible to apply for a loan if:
a. t is or would likely be unable to obtain a loan from a financial institution on reasonable terms and conditions; or
b. There is not a financial institution or branch of a financial institution in a community in which the business enterprise carries on business.
3. Be prepared to provide security. Security can consist of:
a. A mortgage on real property;
b. A pledge on personal property;
c. A personal or general guarantee from the principals of the business enterprise; or
d. Any combination of the above.
Application Steps:
Applicants must:
1. Ensure you meet the Mandatory Requirements;
2. Review the Documents Required on their website and determine if you are able to pull together the necessary documents;
3. Contact their Service Professionals and discuss your business plan and financing needs to find out if NBCC can help.
Phone: (867) 975-7891
Toll Free: 1-888-758-0038
Email: abarkhouse@nbcc.nu.ca
Documentation Needed:
Applicants must:
1. For corporations: Submit Certificate of Incorporation, Certificate of Compliance, Articles of Incorporation, Certificate of Incumbency, Shareholders Register
2. Submit business license from the appropriate municipality
3. Submit Workers Safety and Compensation Commission (WSCC) certificate
4. Submit Business plan
5. Submit contact information for key people, other than key management personnel, which could include Bookkeeper/accountant/accounting firm, Insurance broker, and Legal counsel
6. Submit Personal Net Worth Statement(s)
7. Submit Financial Statements
9. Submit Canada Revenue Agency forms: RC59 and T1013
10. Submit Business Client Consent Form
11. SubmitEnvironmental Checklist
Other Things to Note:
A line of credit provides working capital for a business to “smooth” cashflow requirements during an annual business cycle. A line of credit is expected to “revolve”.
About the author
Maurice
