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CBDC NORTIP: Seed Capital Loan Program
CBDC NORTIP offers individuals, under the age of 35, small business start-up and expansion financing to a maximum of $20,000. Up to $2,000, by way of non-repayable contribution, is also available for training and business counselling. This program is similar to the regular NORTIP program in that it provides financing in the form of fully repayable loans for clients who intend to start their own business.
Financial Assistance
  • The Seed Capital Program offers financing up to a maximum of $20,000 in fully repayable loans.
  • Seed Capital offers low security personal loans to invest into a business.
  • Equity is not necessarily required for a Seed Capital loan.
  • The interest rate on Seed Capital loans is prime + 2%.
  • The maximum repayment term is seven years.
  • The interest rate and repayment terms are flexible due to the nature and circumstances of the businesses.
  • A limited term of no interest and no payments can be obtained for a maximum of three months.
  • Clients can access business training up to a maximum of $2000, that will be paid for by ACOA.
Seed Capital Program Eligibility Criteria
  • Clients have to be residents of the area serviced by CBDC NORTIP, Norris Point to L'Ance aux Meadows and the White Bay Central region.
  • Clients between the ages of 18 and 34 inclusive (applicants under 19 need a co- signature of an adult) may be new start-ups or expansion; over 35 years only new start-ups qualify.
  • Seed Capital loans have to be invested in the start up, expansion or modernization of a business. Clients must have majority ownership of the business.
  • Most business sectors are eligible including retail, personal services, and seasonal enterprises.
  • The loan is intended as a long-term investment in the financing of any costs of the business including fixed assets, start up costs and working capital.
  • The loan may be used as equity to attract other investors.
  • Seed Capital loans cannot be used to purchase an existing business or to refinance existing debts or business restructuring.