Yukon Venture Loan Guarantee Program

The Yukon Venture Loan Guarantee Program supports the growth of small to medium-sized businesses in the Yukon by providing government-backed loan guarantees. This initiative encourages local investments by reducing the risk for commercial lenders.

The Yukon Venture Loan Guarantee Program is a strategic financial partnership formed between the Government of Yukon and participating financial institutions, intended to foster economic growth within local businesses. It helps new business start-ups and expanding businesses by providing a government assurance on a portion of their commercial loans, thereby mitigating the risk for financial institutions and encouraging them to extend credit where they may otherwise be reluctant. By offering a guarantee of 65% on venture loans, the program reduces potential losses for lenders if a business were to fail, making it a crucial financial support mechanism for businesses looking to grow but lacking sufficient collateral or financial history.

This program targets businesses registered in Yukon that strategically aim to influence the local economy positively. By guaranteeing up to $100,000 of a commercial loan, the program provides significant financial support, allowing businesses to invest in resources, operations, and overall business expansion. The mandatory one-time fee of 1.5% of the guarantee ensures that businesses are financially committed, allowing them to weigh the benefits against their financial capacity while giving a nominal upfront cost that aids program sustainability.

For participating businesses, the relief comes as they can secure larger loans that they might otherwise not qualify for, therefore speeding up their growth trajectory or enabling them to seize critical business opportunities. Particularly for small to medium-sized enterprises, this can mean the difference between stagnation and thriving in a competitive market space. Businesses can leverage these funds for pivotal investments such as technology upgrades, infrastructure development, or increasing inventory to meet a growing demand.

The repayment terms are also tailored to business needs, offering up to six years to re-pay the loan, allowing flexibility and ample time to generate additional revenue streams or stabilize cash flows without undue pressure. This is especially beneficial for new ventures that require time to build their clientele and market presence. Moreover, repaying over such a period makes it easier to plan and manage budgets without stressing existing financial commitments significantly.

The process to apply for this program is straightforward, beginning with confirming eligibility through a simple communication with Yukon Economic Development via email or phone. Prospective applicants are then directed to the participating financial institutions, where they can discuss specifics, gather necessary documentation, and submit their application. This step not only facilitates transparency but also ensures that all parties involved have a clear understanding of the commitments and expectations enforced by the program.

Overall, the Yukon Venture Loan Guarantee Program offers invaluable support for the business community in Yukon. By enabling access to necessary capital, it helps build resilient local industries that can contribute to a diversified and robust economy. For entrepreneurs and business owners seeking to leverage growth opportunities, this program presents a pragmatic solution to financial constraints, borne from a collaborative approach between government and industry to sustain and enhance the region's business landscape.