1. Purpose of Financing
Atuqtuarvik Corporation provides loans and equity investments for the purposes of business start-up, expansion and 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 Financing
Atuqtuarvik Corporation was created to improve the access of eligible businesses to various sources of commercial financing. 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 Prime and overall project risks. Loans are for terms for 1 – 5 years. Amortization is up to 25 years.
4. Evaluation Criteria
Four criteria form the basis upon which individual applications for financing are evaluated. They are:
- The financial viability of the project
- The percentage 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.
- Financial resources from other sources (e.g., banks, Territorial & Federal Government programs) must have been reasonably utilized for the project
There are no specific industry or sector restrictions on projects that will be considered.
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 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
Upon receipt of the application information and all supporting documentation, the Account manager will complete the necessary due diligence in order to make a recommendation to the Board of Directors. Once the application has been decided upon by the Board, the applicant will be advised immediately on the outcome.