Mahsi, Mr. Speaker.

Enhancing Business Development Investment Corporation Programs

Committee recognizes the swift action of the NWT Business Development Investment Corporation (BDIC) to implement two new support programs in response to COVID-19.

Committee had concerns that the loan programs available to businesses are not sufficient without being guaranteed or forgiven by the government. Businesses in the NWT incur high operating costs and in many cases have already have taken on loans or debts and cannot further extend themselves to take on additional loans through COVID-19 without any certainty for when their businesses might recover. Many businesses do not have the equity or liquidity to be sure they can pay back the loan.

Until Canada withstands the potential second and third wave of COVID-19 and the NWT lifts all public health orders, many businesses in the NWT will be under extreme pressure. BDIC programs delivered in response to COVID-19 should extend support measures until the economy recovers.

Further, committee is concerned the application process may be too onerous for small businesses. As such, the Standing Committee on Economic Development and Environment encourages the government to: simplify and shorten the application process; provide loan forgiveness options; flexible repayment options; as well as deferral payment options (without accumulating interest) for businesses until the economic depression caused by the public health crisis has subsided.

Additionally, committee wants to see the BDIC prioritize developmental lending opportunities in small communities. Programs such as the Venture Investment Program hold great potential to expand the private sector by providing equity investment into businesses. Equity investment opportunities should be pursued and actively promoted by the BDIC especially at this time.

Recommendation 1

SCEDE recommends that the GNWT, through amendment of BDIC programs, increase business relief efforts through measures not limited to extending loan payment remission and providing loan forgiveness options. SCEDE also recommends the BDIC expand investment programs to stimulate economic development. SCEDE recommends the amendments to the loan program, and a plan to expand the investment program be completed and reported back to committee as per Recommendation 5.

Mr. Speaker, I pass this on to the MLA for Yellowknife North. Mahsi.