Are you an SME looking for funds? IBRD of Newfoundland & Labrador can help you! (Views: 3005)
Wed, 01 Oct 2014
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The Department of Innovation, Business and Rural Development (IBRD), Newfoundland & Labrador has a new business funding program for its small and medium enterprises (SMEs) -the Business Investment Fund. IBRD was established to reflect the enhanced emphasis placed on the innovation aspect of the provincial economic agenda.
The fund comprising of two components – Business Investment Program and Business Development Support Program – has been put into action since August, 2014. Any SME in Newfoundland & Labrador falling short of some capital and in need for some investment to complement funding from conventional sources, can consider Business Investment Program that provides term loans and equities in strategic growth sectors to face the day-to-day competition.
Term loans are repayable to a maximum amount of $500,000 per government fiscal year at the department’s base rate of three per cent. And equity investments are in the form of redeemable preferred shares to a maximum of $500,000 per project. SMEs can use these funds under Business Investment Program to expand their existing market and to increase their exports.
Along with the capital gaining, enterprises will also to have to keep up with the dynamic changes of the market. The Business Development Support Program helps the firms increase its productivity and aids on export markets and/or improve import substitution.
The Business Development Support Program is in the form of a non-repayable contribution(s) to a maximum amount of $100,000 per government fiscal year. The contribution level will be based on 50 per cent of eligible costs, with the business identifying their access to the remaining 50 per cent to complete the project(s).
Who is eligible? To apply for both the grants, the company must be operating with less than 100 employees in the region of Newfoundland and Labrador and have an annual sales as $10 million or less. For more information on the funding programs and to download application forms, please click here.
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