Working Capital Loan

By mmuise

The Working Capital Loan covers business operating costs for one year, including expenses related to hiring key employees.

Comments on Funding:

Funding takes the form of loans of up to $250,000 and there are 2 types of financing available:
1. Term or equity loan, repayable over 5 years, or under certain conditions, up to 7 years. Possibility of postponing principal payments for up to 12 months, or under certain conditions, up to 24 months.
2. Debenture maturing at between 3 to 5 years, or under certain conditions, up to 7 years, and which may be convertible and backed by stock options.

Loan terms and fees:
1. Collateral may be required for this type of financing.
2. Repayable at any time without penalty.
3. Interest rate: competitive and risk-based.

Deadline: Continuous Intake

Applicants must be businesses seeking financing for their operating costs, and meeting these eligibility criteria:

  • Be legally constituted;
  • Be located in the DEL region or plan to be;
  • Work in eligible sectors: Aerospace, Agri-Food, Transport and Logistics, Information Technology, and Life Sciences, and offer value-added services or products generally intended for businesses (B2B);
  • Submit a project that will create and/or maintain jobs;
  • Submit a project for which government financing and DEL financing combined cover a maximum of 50% of the project expenses;
  • Demonstrate that the project is based on realistic financial forecasts showing profitability and growth potential;
  • Provide current financial statements showing 20% equity after the project and the ability to repay;
  • Demonstrate that the business and entrepreneur are not in default to the government or its creditors, nor are they the subject of any litigation.
Application Steps:


Documentation Needed:


Other Things to Note:


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