Mandatory requirements

There are three mandatory requirements in applying for a loan from NBCC:
 
1) The business enterprise must be carrying on business in Nunavut that is:
  • A company or corporation registered or incorporated under the Business Corporations Act;
  • A co-operative association registered or incorporated under the Co-operative Associations Act;
  • A partnership for which a declaration is registered under the Partnership Act; or
  • A corporation incorporated under Part II of the Canada Corporations Act and commonly known as a community futures organization; or
  • An individual. 

2) The business enterprise is eligible to apply for a loan if:
  • It is or would likely be unable to obtain a loan from a financial institution on reasonable terms and conditions; or
  • There is not a financial institution or branch of a financial institution in a community in which the business enterprise carries on business. 

3) The business enterprise must be prepared to provide security.  Security can consist of:
  • A mortgage on real property;
  • A pledge on personal property;
  • A personal or general guarantee from the principals of the business enterprise; or
  • Any combination of the above.