Prosper NWT — Standby Letters of Credit ### 📋 Eligible Entities - Small and medium-sized businesses (SMEs) operating in the Northwest Territories - Businesses across all sectors that bid on contracts requiring contract security - Businesses with suppliers demanding payment security - NWT-based companies seeking to strengthen their credibility with third parties - Sole proprietors, partnerships, and incorporated businesses registered in the NWT ### 💰 Funding Details - Structure: Standby letters of credit (not a direct grant, but a financial instrument) - Coverage: Provides security assurance to third parties (clients, suppliers, contractors) - Repayability: Contingent on contract performance—only drawn if obligations are not met - Cost: Typically involves issuing bank fees; program may subsidize or reduce these costs - Amount: Varies based on contract value and business requirements - No cash disbursement: This is a guarantee instrument, not direct funding ### 🛠️ Approved Expenses - Bid security: Demonstrating capacity to fulfill awarded contracts - Performance bonds: Assurance to clients that work will be completed as specified - Payment security: Guarantees to suppliers for material/service purchases - Contract fulfillment: Securing confidence from contract holders - Working capital support: Enables businesses to pursue larger contracts without upfront capital strain ### ⚠️ Conditions & Milestones - Business must be in good standing and demonstrate creditworthiness - Applicants must show specific contract opportunities or supplier requirements - Standby letters must be issued through an accredited financial institution - Program eligibility limited to NWT-registered businesses - Third-party verification of contract or supplier requirements may be required - Businesses must maintain compliance with all contract obligations - Program conditions subject to issuing bank's underwriting standards - Funds not accessed if contract obligations are successfully completed on time