Yukon Venture Loan Guarantee Program
YT, Canada
Yukon business loan guarantee
grant_single|update January 24, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
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- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
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grant_single|grantors
- Department of Economic Development (YK)
- Government of Yukon
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grant_card_status|open
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Get a loan guarantee of up to $100,000 to start or grow a business.
grant_single_labels|terms_and_conditions
The Yukon Venture Loan Guarantee Program offers a structured financing modality aimed at incentivizing financial institutions to support local business growth in the Yukon territory. The modalities focus on guaranteeing a portion of business loans, thereby reducing the financial risk for lenders.
- The program guarantees 65% of the venture loan, covering the principal amount only.
- There is a one-time fee of 1.5% of the guaranteed amount, payable at the time of issuing the guarantee.
- The maximum guarantee provided is $100,000, supporting loans up to $153,846 based on the guarantee level.
- The repayment term for loans under this guarantee program is capped at 6 years.
grant_single_labels|projects
This program supports new business ventures and expansions in Yukon, facilitating access to financing through government-backed loan guarantees. Eligible activities focus on establishing new companies and expanding existing ones that meet specific revenue and employment criteria.
- Start-up activities for new businesses registered in Yukon.
- Expansion projects for existing Yukon businesses seeking to grow operations.
grant_single|admissibleProjectsExample
$ 95,000
Starting a new co-working space with comprehensive facilities
$ 75,000
Opening a new artisanal bakery with specialized equipment and initial inventory
$ 90,000
Starting a new indigenous cultural center focusing on arts and crafts workshops
$ 40,000
Expanding an existing eco-friendly cleaning service with new equipment and marketing
$ 60,000
Expanding a local organic farm to increase production capacity and market reach
$ 85,000
Launching a tech startup focused on app development and customer acquisition
grant_single_labels|admissibility
Eligibility for the Yukon Venture Loan Guarantee Program is determined by specific criteria related to the business size, location, and financial obligations.
- The business must be a new start-up or an existing business seeking expansion within Yukon.
- The business must have less than $5 million in gross revenue and fewer than 100 employees.
- The business must be registered in Yukon.
- The business must pay Yukon corporate taxes.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Yukon Venture Loan Guarantee Program include new business start-ups or existing Yukon businesses planning expansions. To qualify, these businesses must have less than $5 million in gross revenue and fewer than 100 employees. Additionally, businesses must be registered in Yukon and pay Yukon corporate taxes.
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for the Yukon Venture Loan Guarantee Program:
- Businesses with more than $5 million in gross revenue.
- Businesses with more than 100 employees.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the Yukon Venture Loan Guarantee Program include:
- Business start-up costs
- Expansion expenses
- Working capital
- Equipment purchase
- Inventory costs
grant_eligibility_criteria|zone
This grant specifically targets businesses that are registered and operating in the Yukon territory. Eligibility is defined by the location within this geographical area to support local economic growth.
- Businesses must be registered in Yukon.
- Organizations must operate within the Yukon territory and pay Yukon corporate taxes.
grant_single_labels|criteria
There are evaluation and selection criteria for the Yukon Venture Loan Guarantee Program:
- The viability of the business proposal
- The applicant's ability to repay the loan
- The potential economic benefits to Yukon
- The management experience and skills of the applicant
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Determine Eligibility
- Email ecdev@yukon.ca or call 867-456-3803 to verify your project's eligibility for the Yukon Venture Loan Guarantee Program.
- Step 2: Contact Financial Institution
- Visit or contact a participating financial institution to inquire about the loan application process.
- Gather all necessary information and documentation required by the financial institution for the loan application.
- Step 3: Prepare Application
- Compile all required documents as per the financial institution's guidelines.
- Prepare a business plan or proposal that outlines your business objectives and loan requirements.
- Step 4: Submit Application
- Submit the completed application and accompanying documents to the selected financial institution.
- Pay the one-time fee of 1.5% of the guarantee amount when the guarantee is issued.
grant_single_labels|otherInfo
The Yukon Venture Loan Guarantee Program offers several important details regarding the application process and conditions for businesses.
- The guarantee level provided by the program is explicitly calculated based on 65% of the principal amount of a venture loan, aimed at covering potential losses.
- Applicants are required to pay a one-time fee of 1.5% of the guarantee amount, which is due when the loan guarantee is issued.
- The program emphasizes collaboration with participating financial institutions, suggesting that a good relationship with these institutions might aid the application process.
- The government specifically shares the risk with the lender by guaranteeing part of the loan, which can encourage lenders to finance businesses that might otherwise be considered too risky.
- Businesses should ensure their projects align with the strategic interests of Yukon to maximize applicability and guarantee success.
grant_single_labels|contact
ecdev@yukon.ca
867-456-3803
