Business Investment Program — Equity Investment

This grant provides tailored financial solutions aimed at enhancing business growth through leveraging additional investments. The financing modalities focus on providing structured loan terms and conditions that facilitate strategic expansions.

• Repayable term loans are offered at the Bank of Canada interest rate plus 0.5%.
• Interest rates are variable and subject to change; consult local IET offices for current rates.
• Loans are designed to complement existing funding from conventional sources.
• Financial assistance aims to increase the capital base, enabling SMEs to secure further private-sector investments.

Eligibility for the Business Investment Program requires specific criteria related to the applicant's business profile and operational status.

• The applicant must be a small and medium-sized enterprise (SME) based and operating in Newfoundland and Labrador with fewer than 100 employees and less than $10 million in sales.
• The applicant must demonstrate the ability to undertake the work identified in the project proposal.
• The applicant must demonstrate the ability to access the financial capital required to complete the project.
• The applicant must operate in a strategic sector as defined by Industry, Energy and Technology (IET).
• The applicant must be in good standing with the Government of Newfoundland and Labrador.

Who is eligible?

Who is not eligible

There are specific types of companies that are not eligible for this grant.

• Companies with more than 100 employees.
• Companies with sales exceeding $10 million.
• Companies not operating in strategic sectors as defined by IET.

Eligible expenses

The Business Investment Program supports activities that enhance the strategic growth of small and medium-sized enterprises in Newfoundland and Labrador. Eligible projects are those in sectors identified by Industry, Energy and Technology that foster business expansion and export potential, especially when it leads to leveraging new investments.

• Projects in strategic growth sectors identified by Industry, Energy and Technology.
• Initiatives with strong export potential where assistance is needed to enter or expand in external markets.
• Business expansions that require increased capital to attract new private sector investments.
• Projects that demonstrate a clear need for complementary funding beyond conventional sources.

Eligible geographic areas

This grant is specifically targeted for businesses operating within Newfoundland and Labrador. These geographical areas have been prioritized to support local economic growth and development.

• Companies based in Newfoundland and Labrador.

The Business Investment Program has evaluation and selection criteria that must be met for consideration:

• Applicant must be a small and medium-sized enterprise (SME) based and operating in Newfoundland and Labrador.
• Ability to undertake the work identified in the project proposal.
• Ability to access the financial capital required to complete the project.
• Operate in a strategic sector as defined by IET.
• Good standing with the Government of Newfoundland and Labrador.

Additional key points for the grant applicants include focusing on compliance with general business regulations and the specific requirements of the program.

• Applicants should ensure they are compliant with all applicable Canadian business regulations and taxation laws.
• A clear demonstration of the project's alignment with strategic growth sectors is critical for a successful application.
• Applicants may need to provide detailed financial forecasts that underscore the project's viability and alignment with funding purposes.
• Businesses should show how the loan will specifically enable them to attract further private-sector investment.
• Collaborating with local business advisors or the IET office could enhance the viability and competitiveness of the application.