Yukon Venture Loan Guarantee Program
Last Update: January 24, 2025
YT, Canada
Yukon business loan guarantee
Yukon Venture Loan Guarantee Program at a glance
Eligible Funding
- From $10,000 to $100,000
- Up to 65% of project cost
Timeline
- Continuous Intakes
Financing Type
Grant and Funding
Eligible Industries
- All industries
Grant Providers
- Department of Economic Development (YK)
- Government of Yukon
Status
Open
Overview of the Yukon Venture Loan Guarantee Program program
Get a loan guarantee of up to $100,000 to start or grow a business.
Financing 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.
Eligible projects & activities
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.
Examples of admissible projects:
$ 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
Eligibility criteria of the Yukon Venture Loan Guarantee Program program
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.
Who is eligible?
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.
Who is not eligible
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.
Eligible expenses
Eligible expenses for the Yukon Venture Loan Guarantee Program include:
- Business start-up costs
- Expansion expenses
- Working capital
- Equipment purchase
- Inventory costs
Eligible geographic areas
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.
Eligibility criteria of the Yukon Venture Loan Guarantee Program program
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
How to apply to the Yukon Venture Loan Guarantee Program program
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.
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.
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.
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.
Additional information
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.
Contact {{GrantProviderName}}
ecdev@yukon.ca
867-456-3803
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