Yukon Venture Loan Guarantee Program

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.

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.

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

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.