The Government of the Northwest Territories (GNWT) introduced Economic Relief Measures that will help minimize expenses and keep cash available for immediate needs in response to the COVID-19 pandemic.

The relief package is valued at $13.2 Million dollars and will take effect immediately. This package is intended to work in concert with federal incentives under Canada's $107 billion COVID-19 Economic Response Plan.

The full GNWT press release can be found here.

The GNWT Resources for Business announcement can be found here.

Immediate GNWT Response Measures include:

Fee Reduction

Northern supply chain businesses will receive relief through the removal of fees until the end of June for:

  • Deh Cho Bridge tolls
  • Truck permits
  • Airport landing fees

Business Development and Investment Corporation (BDIC)

Working Capital Loans

  • Loans of up to $25,000, (or more if need is clearly addressed), are available to qualified NWT businesses at a rate of 1.75%. Loans will be amortized for up to five years with options for payment deferment.
  • To be eligible, business owners will need to reside in the Northwest Territories ("NWT") and demonstrate financial need due to cash flow issues resulting from COVID-19. Priority will be given to businesses with fewer than 20 employees but the GNWT will consider applications from businesses with up to 50 employees.
  • The first intake for loan applications is planned for Friday, April 3, 2020, with approved loan applications being processed within two weeks.
  • Loan applications will be received and reviewed by the Department of Industry Tourism and Investment regional offices and processed through the BDIC. A simplified loan application form can be found here.
  • Identified financial needs that can be addressed by the Federal Government's economic support package, or other relief initiatives, may be considered ineligible under this funding program.  

Apply for a working capital loan here.

Deferred Loan Payments

  • From April 1 to September 30, 2020, clients (borrowers) of the BDIC can apply to reduce or defer up to three months of loan payments without penalty or additional interest charges.
  • Businesses are automatically approved and not required to demonstrate financial hardship or impacts resulting from COVID-19.
  • Requests for payment reductions or deferments must be received by the appropriate Department of Industry Tourism and Investment regional office no later than the 24 day of the month prior to the payment date. For April 2020 payments only, the BDIC will extend the deadline to March 26 to allow sufficient time for applicants to make their requests.
  • Following the payment deferment or reduction period, existing loan payment schedules will resume along with existing terms and conditions.

Find more information on sending a letter to defer your loan payment here.

Establish Economic Relief and Growth Advisory Group

An Advisory Council will be established to seek and provide insight from the NWT business community and be a resource for economic decision making relating to COVID-19.

The Group will provide advice and guidance on programs, services, and supports required by NWT businesses and key economic sectors during COVID-19, and measures to facilitate the long term recovery of the economy once the crisis abates.

The GNWT will ensure appropriate financial resources are available to this Council. An initial budget of $100,000 has been identified.

Advance Portion of Net Fiscal Benefit Transfer to Indigenous Governments

Indigenous Governments that are signatories to the Devolution Agreement will receive advanced payments for the 2020 GNWT net fiscal benefit from resource revenues.

Contribution Carryovers

Non-government organizations, Indigenous Governments, and Community Governments with unused contribution amounts in 2019-20 are allowed to use these funds in 2020-21.

Payment Terms for GNWT Vendors

The payment terms will be shortened for small businesses and individuals on GNWT invoices so they are paid out as soon as possible.

Workers Safety & Compensation Commission employer fees

The due date of Employer Assessment Payments has been extended from April 1 to May 1, 2020.

GNWT Collections Policy

The GNWT is pausing most collections efforts, including:

  • Outside collection agency activity
  • GNWT set-offs on GNWT payments
  • GNWT set-offs on Canada Revenue Agency tax refunds

Income Assistance

Increased funding has been allocated to the Income Assistance program, ensuring Northerners basic needs are met.

Student Financial Assistance

The payment of student loans has been deferred to September 30, 2020. Interest will not be charged during this time.

Northwest Territories Power Corporation Load Limiters/Collections Policy

NWT residents will be supported through the removal of load limiters, ceasing of disconnections, and pausing collection efforts.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.