$19 million for business support and economic diversification

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The Department of Industry, Tourism and Investment is putting nearly $19 million toward its economic diversification and business support programs in 2023-24.

Last year, the territorial government anticipated spending $17.9 million on these initiatives but wound up spending closer to $19.1 million.

Approximately $3.9 million will go into Support for Entrepreneur and Economic Development (SEED) in 2023-24, according to the territorial budget.

In 2021-22, SEED provided $4.2 million, down from $4.6 million the previous year.

Entrepreneur support under SEED in 2021-22 amounted to $1.57 million, community economic development received $632,977, micro-businesses took in $471,636, strategic investment was given $208,353, business intelligence and networking got $54,889 and $30,000 was handed out in sector support.

Between the federal and territorial governments, $8.2 million was put into Covid19 relief measures in 2021-22, much of it to help businesses stay afloat during an extraordinary period.

The GNWT has budgetted $1.6 million for Community Transfer Initiatives in 2023-24, which provides funding to economic development officers in communities.

Community Futures organizations in the territory will get $843,000 in 2023-24.

In 2021-22, $2.1 million was disbursed to Community Futures organizations collectively, when including funding for the employment of economic development officers. Western Arctic Business in Inuvik led the way with $613,487. The next largest sum, $438,039, went to the Deh Cho Business Development Centre. That was followed by $394,067 to the Sahtu Business Development Centre, $347,880 to Thebacha Business Development Services and $309,637 to Akaitcho Business Development.

Almost $1.3 million went to other communities to support economic development officers in 2021-22.

Sector support

Of the $26.1 million in grants and contributions that ITI made in 2021-22, tourism and parks was the sector to benefit the most at $10.7 million, then came business support agencies at $5.8 million, business and manufacturing support at $3.8 million, mining and petroleum resources at $2.9 million, agriculture and fisheries at nearly $1.8 million, traditional economy at $622,099 and community transfers and events at $389,408.

Regionally, the North Slave received the most funds ($6.9 million), followed by the Sahtu ($2.7 million), the South Slave ($2.67 million), the Dehcho ($2.3 million) and the Beaufort Delta ($2.25 million). Territorial organizations and initiatives took in $9.2 million.

Live long and Prosper?

The GNWT is updating the Northwest Territories Business Development and Investment Corporation Act (BDIC Act) “to enhance clarity and transparency and value-added supports to entrepreneurs and businesses.” It will also change the name of the act to the Prosper Northwest Territories Act and the BDIC will become known as Prosper NWT.

“The bill will also clarify when a corporation will be considered a subsidiary of Prosper NWT for the purposes of the act and will give the minister the authority to modify Prosper NWT’s non-financial support programs to better respond to emerging business needs,” the GNWT stated. “It will give Prosper NWT the power to provide NWT businesses with non-financial supports and assistance that are not part of established programs and continue to give Prosper NWT the authority to provide financial support to business enterprises and subsidiaries.”

Grants for Yellowknife businesses

At the end of May, the City of Yellowknife introduced the Covid-19 Business Recovery Grant for small- and medi- um-sized enterprises. Applications opened June 12 for assistance of up to $10,000 from a $200,ooo pot. Eligible businesses can use the funds to attract and retain employees, modernize aspects of their operations and “build resilience,” according to the municipality BDIC backing

The NWT Business Development and Investment Corporation (BDIC) has a fresh $2.1 million contribution to work with from the GNWT in 2023-24.

In 2021-22, the BDIC issued close to $8 million in new loans with $3.8 million going to the North Slave, $2.1 million to the South Slave, $1.7 million to the Dehcho, $400,000 to the Beaufort Delta and $10,000 to the Sahtu.

Transportation and storage, accommodation and food service, real estate and rentals and retail trade were the sectors that accounted for the greatest loans.

As of 2021-22, with 15 new credit facilities approved that year, the corporation’s loan portfolio was valued at $50.6 million. The organization ended the 2022 fiscal year with a $825,000 surplus and an accumulated surplus of $35.1 million.

The BDIC directly supports 15 jobs.

Business

The Business Development Bank of Canada, which has an office in Yellowknife, offers small business loans, financing for larger projects and has business consultants on staff to provide advice. The agency is a federal Crown corporation that gears its services toward small to medium-sized ventures.

NWT Chamber of Commerce

The NWT Chamber of Commerce, which represents close to 110 member businesses, advocates for business and industry across the territory. Membership benefits include discounts through certain businesses and access to a group insurance plan. The NWT Chamber is a member of the Canadian Chamber of Commerce, which lobbies on behalf of close to 200,000 businesses nationwide.

GNWT SEED ALLOCATION BY ECONOMIC SECTOR IN 2021-22 (GREATER THAN 5%)

Construction — 12.5 per cent ($529,233)

Arts and crafts — 12 per cent ($506,856)

Accommodations and food services — 10.4 per cent ($438,995)

Retail trade — 9.5 per cent ($401,129)

Travel and tourism — 9 per cent ($378,906)

Entertainment and recreation — 8.5 per cent ($360,640)

Other services — 7.4 per cent ($310,593)

Public administration — 6.4 per cent ($270,026)