Yukon Economic Development Fund (Tier 1): Business Eligibility Checklist

Yukon Economic Development Fund (Tier 1): Business Eligibility Checklist

If you run a business in Yukon and need help paying for a growth or planning project, the Yukon Economic Development Fund (Tier 1) can cover a large share of your costs. This program offers up to $30,000 for eligible projects that improve competitiveness, innovation, or sustainability. The key question is simple: does your business qualify?

Below is a clear business eligibility checklist to help you decide before you apply.

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Yukon Economic Development Fund (Tier 1): Who Is Eligible?

The Economic Development Fund — Tier 1 (EDF Tier 1) is delivered by the Government of Yukon’s Department of Economic Development. It supports smaller-scale projects that strengthen Yukon’s economy and local businesses.

✅ Business Location and Structure

Your business must meet all of the following:

• Be located and operating in Yukon
• Be a for-profit business, non-profit, or social enterprise with economic activity in Yukon
• Be legally registered and compliant with territorial laws
• Carry on activities that contribute to economic development in Yukon

If your business operates outside Yukon or only plans to move there later, it will not qualify under EDF Tier 1.

✅ Eligible Project Focus

EDF Tier 1 does not fund day-to-day operations. Your project must clearly support at least one of these goals:

• Business innovation (new products, services, or processes)
• Sustainability improvements (energy efficiency, waste reduction, long-term resilience)
• Business planning (market studies, feasibility studies, strategic planning)
• Economic diversification (new markets or sectors)
• Competitiveness improvements (capacity building or productivity gains)

Projects that are routine maintenance or ongoing operating costs are generally not eligible.

✅ Funding Amounts and Cost Sharing

This program uses cost sharing, which means you must contribute your own funds.

• Maximum funding: up to $30,000
• Coverage limit: up to 75% of eligible project costs
• Capital expenses: capped at 50% of total project costs

Example: If your project costs $20,000, EDF Tier 1 can fund up to $15,000. You must cover the remaining $5,000.

✅ Eligible Expenses

Eligible expenses depend on your project, but commonly include:

• Professional fees (consultants, engineers, planners)
• Market research and feasibility studies
• Equipment or capital assets (within the 50% cap)
• Project-specific labour or technical services

To learn more about eligible expenses, see our guide on regional economic development grants.

Tools like GrantHub’s eligibility matcher can help you quickly confirm whether your project type and expenses align with Yukon funding rules.

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Application Readiness Checklist

Before applying, confirm you can provide:

• A clear project description with measurable outcomes
• A detailed budget showing your contribution and requested funding
• A project timeline
• Proof your business is in good standing in Yukon

Incomplete applications often face delays or rejection.

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Common Mistakes to Avoid

1. Applying for operating costs
   EDF Tier 1 is project-based. Rent, utilities, and regular wages usually do not qualify.

2. Ignoring the cost-share requirement
   You must show where your matching funds come from. “To be confirmed” is not enough.

3. Overloading capital expenses
   Capital costs cannot exceed 50% of total project costs, even if the project is approved.

4. Vague project outcomes
   Applications without clear economic benefits or outcomes are less competitive.

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Frequently Asked Questions

Q: How much funding can I get from EDF Tier 1?
You can receive up to $30,000, covering a maximum of 75% of eligible project costs. Capital expenses are limited to 50% of total costs.

Q: Who can apply for the Yukon Economic Development Fund?
Yukon-based businesses, non-profits, and social enterprises that contribute to economic development can apply, as long as they meet program requirements.

Q: Are capital expenses covered under EDF Tier 1?
Yes, but only up to 50% of total project costs. The rest must be non-capital or covered by your own funds.

Q: Is EDF Tier 1 funding repayable?
No. EDF Tier 1 is a non-repayable grant, though funding received may still have tax implications for your business.

Q: How long does approval take?
Timelines vary based on application volume and project complexity. Allow several weeks for review and decision-making.

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Next Steps

If your business checks most of the boxes above, the Yukon Economic Development Fund (Tier 1) is worth pursuing. Use GrantHub to check your eligibility and find more Yukon grants that could support your project.

You may also find these guides helpful:

• What Business Expenses Are Eligible Across Canadian Grants and Loans?
• How to stack grants and loans without violating funding rules

Taking a few minutes to confirm eligibility upfront can save weeks of work later.