Opportunities NORTH Millions of dollars in Nunavut business assistance

By Derek Neary Northern News Services

The territorial government has set aside $1.8 million for the Strategic Investments Program in 2023-24, the same amount allocated in 2022-23. This program provides support for start-up or expansion costs for businesses majority-owned by Nunavut residents, municipalities, not-for-profit corporations and societies.

The Small Business Development Program has a $823,000 budget in 2023-24, equal to the previous year. Those with less than $500,000 in gross sales or fewer than 10 employees are eligible to apply.

The Nunavut Business Credit Corporation (NBCC) has a fresh $900,000 at its disposal through the Government of Nunavut in 2023-24, the same as the previous two years.

The territorial corporation, which sustains six staff positions internally, provides financing to small- and medium-sized businesses. In 2021-22, the NBCC approved 12 new loans totalling

$3.1 million. It also recorded a surplus of $737,173, which led to an accumulated surplus of $180,962. That marked the first time that the organization had an accumulated surplus since 2007-08. The corporation was also granted a new $2-million legislated lending limit.

Of the $13.2 million in loans outstanding at the close of 2021-22, the NBCC had provided $7.7 million in financial support to Qikiqtaaluk ventures, $2.7 million to Kitikmeot enterprises and $2.4 million to Kivalliq initiatives.

At the end of 2021-22, the NBCC had 26 performing clients and 39 performing loans. There were seven non-performing clients and loans, which represented close to $2.8 million.

Broken down by industry, construction accounted for 31 per cent of NBCC’s loan portfolio as of the end of 2021-22. The service industry was next at 19 per cent, followed by hospitality at 12.4 per cent, retail at 12 per cent and transportation at 4.8 per cent.

Kakivak celebrates 30 years

The Kakivak Association marked its 30th anniversary in 2021-22. The economic development organization, based in

Iqaluit and serving the Qikiqtani region, distributed a record $15 million in funding in 2022, far exceeding the previous record of close to $8.25 million set in 2021. Covid-19 relief funding played a significant role during both years.

In a business development capacity, Kakivak provided $673,988 to 69 clients in 2022. The largest program was the Sivummut Grants to Small Business at $203,611. The Entrepreneurship and Business Development fund awarded $135,274, the Economic Opportunities Fund gave out $135,000, The Covid Business Relief fund provided $128,110, the Small Tools pot was worth $51,993 and $20,000 went out through the Business Capacity and Start-up Fund.

Much greater sums were invested through the Training and Employment division ($8.7 million) and the Childcare, Youth and Disability division ($7.5 million). There were 872 training participants in 2022 with $5.9 million worth of training and employment projects. Another $2.8 million went to supporting Inuit post-secondary education.

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