Canadian banks across the country, and particularly in Nunavut, generally shy away from providing lending services for start-ups or companies without a solid history of successful operation. This underscores the ongoing need for alternative financing institutions in Nunavut such as NBCC and its strategic partners.
NBCC lends money within the following parameters:
- Maximum level of support to any one enterprise or to a group of related enterprises is $1 million;
- Maximum term for credit facilities is five years and amortization is generally 25 years.
- Competitive interest rates.
The types of projects that NBCC considers from small and medium sized businesses include:
- Purchase of fixed assets;
- Leasehold improvements;
- Consolidation of debt;
- Bid bond security for contractors;
- Providing working capital for inventory acquisition; and
- Interim or bridge financing.
All business sectors in Nunavut are supported by NBCC. At any given time, NBCC has from 50 to 70 loans with Nunavut businesses, and a total portfolio of $16 to $18 million.