May 1, 2020
On Monday, the Government of the Northwest Territories opened a second intake of applications for low interest loans to support NWT businesses through the current COVID-19 pandemic.
News Release: Second Intake of Working Capital Loans Now Available to NWT Businesses
Applications are now being accepted and reviewed on an ongoing first-come-first-served basis.
Here are the five most common questions that we’ve been asked about this latest announcement.
Why loans not grants?
The GNWT does not have the financial capacity to provide grants to all NWT businesses that have been impacted by COVID-19. But we are working with the federal government to ensure that their programs and initiatives are relevant and accessible to as many NWT businesses as possible.
NWT Businesses are encouraged to pursue loans under CanNor’s Northern Business Relief Fund which is a non-repayable grant program that provides short-term support for ongoing operational costs to NWT businesses. Additionally, there is a loan program under the federal government’s Canada Emergency Business Account under which a portion of the debt incurred can be forgiven.
Is there a maximum amount businesses can apply for under the working capital loan?
To date, we have been trying to limit loans to $25,000; however, we are flexible in our assessments and businesses can receive more if their need is clearly demonstrated. This initiative is intended to provide businesses with bridge financing for their working capital needs for a 1 to 2 month period.
Many small businesses will require far less than $25,000 and we will be approaching this process with the intention of helping as many small businesses as possible that are demonstrating substantial need.
How will ITI prioritize loan applications to ensure disbursement is equitable?
Our assessments will be based on the financial need of businesses hit by the COVID-19 crisis. Right now our criteria are very flexible and we will review all applications and allocate money as fairly as we can.
Why are non-resident businesses allowed to apply for these NWT loans?
Working Capital Loans are only available to non-resident businesses that can demonstrate significant investment in and support of the NWT economy. These companies have NWT employees, and support local businesses – but may not qualify directly for other supports.
Like all businesses, it is in our best interest that these companies survive this crisis and are positioned to help our economy recover when the time comes.
How long will the process take for a business to find out if they are approved?
Applicants should expect to have acknowledgement of their application within 2 business days and if successful, should receive the loan within 2 weeks.