CBDC
CBDC NORTIP
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CBDC NORTIP: Business Loans Program

CBDC NORTIP offers financial assistance in the form of fully repayable small business loans to profit- oriented organizations wanting to start or expand a small business.  CBDC NORTIP's loans have a maximum limit of $150,000 with a maximum repayment term of 15 years. 

Funding from the CORPORATION can be used to start a new business that will create and maintain permanent employment.  CBDC NORTIP's loans can also be used to purchase, refinance, expand or modernize an existing business.

Interest Rate Policy

The interest rate on a CORPORATION loan depends on the amount of risk involved in the venture and the repayment term. The minimum interest rate is 7.0% and the maximum interest rate is 13.50% .

Repayment Terms

CBDC NORTIP loans have a maximum repayment limit of fifteen years. NORTIP takes into consideration that every business is unique, in that they face different challenges and circumstances therefore, repayment can be set up to suit the clients needs. Factors that are considered when repayment is being negotiated are:
  • The sector or type of business
  • The nature & value of the security provided
  • The cash flow cycle of the venture
  • Individual Preferences

Security Requirements

Every loan agreement executed by NORTIP Development Corporation requires the pledge of assets to secure the debt, normally this would be the asset being purchased or improved upon. Guarantees by principal(s) and spouse(s) may also be required. Businesses who are involved in activities that require special licences, a power of attorney or assignment must be signed to allow NORTIP to transfer these licences in the event of default on the loan. These special licences include, but are not limited to, big game licences, aquaculture licenses and commercial fishing licences.

Eligibility Criteria

  • The applicant must display both management and technical skills.
  • Clients must demonstrate a high degree of commitment to the venture and offer sufficient security for the loan.
  • The applicant should have a reasonable investment or equity position in the business as demonstrated by financial statements, or the ability to provide new investment from personal assets.
  • The applicant must demonstrate sufficient earnings to service existing term debt in addition to requested term debt and has not declared bankruptcy.
  • The proposed venture has to be in accordance with the Organizations mandate, create new or expand on existing small businesses resulting in the generation and maintenance of permanent employment.
  • Financial assistance must not have an adverse competitive impact on other businesses established in our region.
  • A majority of the jobs created or maintained by the business should be filled by residents of the local area.
  • The business project, in the opinion of the Board of Directors of the CORPORATION must have a reasonable expectation of economic viability.
  • The assistance required must be deemed necessary and essential to the success of the project.
  • The maximum amount of loan financing or equity capital that may be outstanding at any given time to a single business cannot exceed $150,000.
  • Applications for funding of fixed assets or a business venture must include appraisals.
  • Applications for the establishment of new retail, food services, lounges, gas stations or personal services are not eligible for funding.
  • Real estate speculation or businesses primarily for the rental of real property are not eligible.
  • Fisher people must have CORE status.
  • Logging operations must have a viable cutting allocation.