The Government of the Northwest Territories is designating $20.9 million for economic diversification and business support in 2024-25.
The 2023-24 territorial budget estimated closer to $20 million for that purpose but the actual expenditures climbed to almost $23.2 million.
Among the highest anticipated GNWT grants, contributions and transfers are $3.5 million for the Support for Entrepreneur and Economic Development (SEED) program, $1.6 million for Prosper NWT (formerly known as the NWT Business Development and Investment Corporation), $1.6 million for community transfer initiatives and $1.5 million towards the Sustainable Canadian Agricultural Partnership.
The GNWT anticipates investing $690,000 in Community Futures in 2024-25, down from $843,000 last year.
Lending to prosper
The Business Development and Investment Corporation (BDIC) took on the name Prosper NWT in February.
In 2022-23, the organization approved $4.7 million in new loans, subsidies and contributions. The Sahtu received $1.8 million, the largest amount, followed by $1.2 million to the Dehcho, $866,000 for the North Slave, $503,000 for the Beaufort Delta and $301,000 for the South Slave. The largest sums went into enterprises involved in retail trade (almost $1.3 million) and accommodations and food services (approximately $800,000).
A dozen loans were disbursed totalling $3.7 million, which increased Prosper NWT's loans portfolio to a total of $49.9 million, which includes $3.3 million owed on overdue or "impaired" loans and related interest.
The BDIC has pumped $124 million into 612 businesses since 2005, according to the organization's annual report. The South Slave accounted for 42 per cent of that financial assistance while the North Slave was at 32 per cent.
The GNWT has set aside $2 million in loan guarantees for Prosper NWT in 2024-25, the same amount as last year, but its $1.6 million in anticipated operations expenditures for the lending organization is down from almost $2.1 million last year.
Community Futures
The Community Futures 2022-23 national annual report indicates that $751,000 in loans was disbursed through 23 loans last year. Importantly, that's based on only three of six Community Futures offices in the territory reporting activity.
The loans supported 74 jobs.
Community Futures offices in the NWT directly employed six people.
Business Development Bank of Canada
The Business Development Bank of Canada, which has a business centre 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, representing more than 100 member businesses, celebrated its 50th anniversary in 2023.
"The NWT Chamber works to promote and create business opportunities, foster business development, and serve as a channel for professional business relationships between members, all level of governments and business organizations," the organization states on its website.
Members can also benefit from training opportunities, access to discounts from some businesses and a group insurance plan.
The NWT Chamber is part of the Canadian Chamber of Commerce, which lobbies for close to 200,000 businesses nationwide.
Fact file
GNWT SEED allocation by economic sector in 2022-23 (greater than 5%)
Other services - 13.2 per cent ($470,127)
Arts and crafts - 13.2 per cent ($469,159)
Accommodation and food services - 10.5 per cent ($374,400)
Travel and tourism - 10 per cent ($354,336)
Public administration - 8.8 per cent ($313,332)
Construction - 7.2 per cent ($254,402)
Manufacturing - 5.4 per cent ($191,564)
Source: GNWT
Fact file
Community Futures contributions by region 2022-23
Thebacha Business Development Services (Fort Smith) - $155,000
Akaitcho Business Development (Yellowknife) - $80,420
Sahtu Business Development Centre (Norman Wells) - $112,500
Western Arctic Business (Inuvik) - $239,270
Deh Cho Business Development Centre (Fort Simpson) - $203,630
Source: GNWT