In general, Canadian chartered banks, but particularly in Nunavut, do not provide credit facilities for start-up businesses or businesses without a history of successful operation.
There are, however, a number of financing agencies in Nunavut that can provide funding to start-up businesses and small to medium sized businesses. These organizations include community futures organizations, such as Kitikmeot Community Futures Inc., Kivalliq Business Development Centre, and Baffin Business Development Corporation. In addition, Atuqtuarvik Corporation and Kakivak Association provide funding to Inuit owned businesses.
In the case of Nunavut Business Credit Corporation, our lending parameters are:
- Generally, we prefer to provide credit facilities greater than $150,000 since community futures organizations fill this niche
- Our legislation provides that we can lend up to $1,000,000 to any one business enterprise or any related business enterprises
- Businesses must be resident in Nunavut
Types of projects considered
The types of projects that could be considered by Nunavut Business Credit Corporation include:
- Purchase of fixed assets
- Purchase of realty
- Leasehold improvements
- Consolidation of debt
- Working capital, such as the acquisition of inventory or accounts receivable/accounts payable
- Interim or bridge financing
- Bid security for construction projects
Nunavut Business Credit Corporation does not have limitations with respect to business sectors that it can lend in and has provided credit facilities in the following business sectors: communications, construction, financial, fisheries, hospitality, media, real estate, retail, tourism, transportation, and specialized business services.