The business program is an initiative between the Government of Yukon and:
The program is administered by the Department of Economic Development, but businesses do not need to contact the Government to use the program. See the information below.
New business start-ups or expansions of businesses in the Yukon that have or project to have less than $5,000,000 in gross revenues and less than 100 employees.
The program is restricted to those businesses registered in Yukon and that pay Yukon corporate taxes
Businesses involved in the development and distribution of new products or services, the export of goods or services, import substitution, high technology and information services.
Upgrades to tourism attractions and tourist accomodation facilities.
Ineligible activities include retail operations, refinancing of existing debt, speculative real estate transactions, changes in ownership and transactions involving withdrawal of shareholder loans.
The program will be primarily focused on new or expanded activities which will have the potential to expand the Yukon economy and create new jobs.
Guarantee Amounts and Level
Minimum $10,000; maximum $100,000 guarantee
Guarantee level is 65% of venture loan, principle only, and based on the net loss of the venture loan.
Example - a loan guarantee for $65,000 would support a $100,000 loan.
Maximum six year repayment term.
Interest-only payments are permited in the first year.
Note that commercial loans normally have a three year maximum term. This program functions as "patient capital".
The program is delivered by participating financial institutions. These institutions receive the loan applications, evaluate the projects, approve or reject the application, and provide and collect the loans.
This program is normally used in conjunction with the lending institutions' conventional business loans.
Participants do not need to contact the Government of Yukon to use this program.
The Government of Yukon determines eligibility, issues the venture loan guarantee, and if the guarantee is called, payment of 65% of the net loss on the outstanding principle amount of the venture loan.
The lending institution sets the rate within the established range of chartered banks commercial lending rates.
There is a one time fee of 1.5% of the guarantee amount, payable on issuance of the guarantee.
The Venture loan represents that portion of the financing for which there is inadequate or no security available and will be established as a separate loan. The bank will take all reasonable security to support the loan, such as personal guarantees and general security agreeements as appropriate.
Equity requirements will be determined by the bank, based on the nature of the project and risk involved.
Business and Industry Branch
Department of Economic Development
PO Box 2703 (F-1)
Phone: (867) 393-6459 or
1-800-661-7014, local 7014
Fax: (867) 393-6228
303 Alexander Street, 1st Floor