If you run a small or medium-sized business in Newfoundland and Labrador, getting the money you need to grow can be tough. The Business Investment Program (BIP) helps by offering provincial financing as either a term loan or an equity investment. Which option you get depends on your business stage and how much risk you can handle. Both options must be repaid and are meant to work with, not replace, private financing.
This guide explains how the program works, how to apply, and how to decide between equity vs. term loan funding under the Business Investment Program.
The Business Investment Program is managed by the Department of Industry, Energy and Technology (IET). It supports small and medium-sized businesses that want to improve productivity, grow exports, and compete for the long term.
To qualify, your business must:
The program accepts applications year-round and reviews each one on its own merits.
The Business Investment Program — Term Loan gives businesses repayable financing at a lower-than-market interest rate to help pay for important investments.
This option is best for businesses with steady cash flow that can handle regular loan payments.
The Business Investment Program — Equity Investment offers equity-based financing instead of a regular loan.
Equity funding means the province shares some of the risk. Because of this, the government will look closely at your business model. They will also review your growth potential. Your management team will be examined in more detail.
If you’re not sure which stream fits your business, GrantHub’s eligibility matcher can help you compare equity and loan-based programs for your sector and stage.
The steps to apply for either a term loan or equity investment are mostly the same.
Prepare a detailed project proposal
Provide financial documentation
Show strategic alignment
Submit through IET
There is no set timeline for approval. Equity deals are often more complex and take longer to process than term loans.
If you want to see a full list of active business funding programs in Newfoundland and Labrador, GrantHub’s database is a good place to start your search.
| Factor | Term Loan | Equity Investment |
|---|---|---|
| Repayment | Fixed schedule | Based on exit or buy-back |
| Cash flow impact | Immediate repayments | No monthly payments |
| Ownership | No dilution | Partial provincial ownership |
| Risk tolerance | Lower | Higher |
| Best for | Stable SMEs | High-growth companies |
If your business can handle monthly payments, a term loan is usually quicker and easier. If you have strong growth prospects but limited cash flow, equity investment may be a better fit.
Thinking BIP is a grant
All money from the Business Investment Program must be repaid, either as a loan or equity.
Applying with no private financing
This program is meant to work with other funding, not replace it.
Weak cash flow projections
Even if you apply for equity, you must show your business can be financially stable in the long run.
Not following stacking rules
Mixing funding incorrectly can slow down or stop your approval.
Q: Is the Business Investment Program a grant?
No. Both the term loan and equity investment options are repayable forms of financing.
Q: What interest rate does the Business Investment Program term loan use?
The interest rate is the Bank of Canada rate plus 0.5%.
Q: Can startups apply for equity funding?
Early-stage businesses may be considered for equity investment if they show strong growth and export potential.
Q: Can I combine this program with federal grants or loans?
Yes, stacking is often allowed, but total government support is checked as part of the application.
Q: How much funding can I receive?
There is no fixed maximum. Funding depends on your project size, risk, and financial structure.
Deciding between equity vs. term loan funding from the Business Investment Program depends on your cash flow, growth plans, and comfort with risk. GrantHub helps you track all active provincial and federal programs — including those in Newfoundland and Labrador — so you can quickly see which ones match your business needs.
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