1. Purpose of Funding
Atuqtuarvik Corporation provides loans
for the purposes of business start-up, business
expansion and business acquisition. Eligible
projects must be commercially viable, Nunavut-based
and create benefits for Inuit in the areas of jobs,
training and social improvements.
2. Limits to Funding
Applicants
are eligible to have more than one loan.
Atuqtuarvik Corporation was created to
improve the access of eligible businesses
to various sources of commercial finance. As
a result, if an application is submitted
to Atuqtuarvik Corporation for financing, proponents
will also be expected to maximize opportunities to
secure commercial financing from other sources.
The general guidelines used when assessing loan amounts are:
- Applicants must be capable of providing their own equity; and
- Loan and equity investment amounts are based on the percentage of Inuit ownership.
3. Terms and Rates
Rates charged are based on the Bank of Canada rate and overall project risks.
Loans: Terms from 1 to 10 years
Amortization: Up to 30 years
4. Evaluation Criteria
Four criteria form the basis upon which
individual applications for funding are
evaluated. They
are:
- The financial viability of the project
- The degree of Inuit ownership and participation
in management
- The benefits of the project to the Inuit of
Nunavut. Specific benefits against which
projects are assessed are in the areas of: jobs;
ownership; housing; language and culture. It
is not expected that the benefits of individual
projects will include all areas; however, sufficient
overall benefits must be provided to qualify
for funding.
- Financial resources from other sources (e.g.,
banks, Territorial & Federal Government
Grant programs) must have been reasonably utilized
for the project
There are no specific industry or sector restrictions
on projects that will be considered.
5. Documentation
The following documentation will normally
be required in order for applications
to be accepted for analysis and a funding decision.
- Information about the applicant including
nature of current business, financial history
and projections where appropriate.
- Proposed ownership structure of project.
- An overview of key aspects of the project
and the role that Atuqtuarvik Corporation is
being asked to play.
- A business plan that includes:
- Description of proposed business activity
- Investment requested from Atuqtuarvik Corporation
- Ownership and management
- Analysis of market and clientele served or
to be served by the business
- Financial projections
- Details of proposed financing from all sources
- Detailed strategic and project implementation
plans
- Letters of intent or documents indicating
regulatory approvals required
- Identification of anticipated benefits of
the project to the Inuit of Nunavut
- Any applicable environmental assessments
The applicant must also provide Atuqtuarvik
Corporation with written authorization to verify
information provided in the application through
direct contact with the applicant’s bankers,
accountants, creditors, employers, credit bureaus,
etc.
6. Evaluation Process
Applications must be fully completed
and submitted at least six weeks before
one of Atuqtuarvik Corporation’s quarterly Board
of Directors meetings to allow for sufficient
time to conduct a preliminary analysis and decide
whether to proceed to a more in-depth analysis. If
a positive decision is taken, an analysis and
final decision will be undertaken as quickly as
possible. Times will vary depending on the
complexity of the project. |
