Thank you, Mr. Speaker. My questions today are for the Minister of Industry, Tourism and Investment. In relation to my Member's statement today, I'd like to talk about the SEED funding. Is the department tracking how many applications for SEED funding are being submitted specifically as a result of COVID-19, and, if so, how many applications for COVID-19 SEED funding has ITI received, how many have been approved, and how much funding is associated with these approvals? Thank you.
Thank you, Member for Kam Lake. Minister responsible for Industry, Tourism and Investment.
Thank you, Mr. Speaker. As we revamp our guidelines for our SEED funding, it's now sort of open to all, so that distinction of COVID-related or not is not really relevant. There have been 40 applications for SEED to date, requesting approximately $410,000. Thirty applications have been approved, equalling approximately $220,000 in funding. Two applications have been denied as they did not meet SEED policy criteria. Two applications were withdrawn. Six applications are awaiting review by the regional panels. Applications for the 2020-2021 SEED started being reviewed by the regions on May 13, 2020. It has only been two weeks that we have been receiving applications, and yet we have already gotten a lot out the door.
According to the backgrounder that accompanied the announcement of top-up funding, I quote, "a flexible approach shall be taken to the provision of SEED strategic initiative funding, with an allowable funding range between $30,000 and $70,000." However, the ITI SEED program webpage and the policy itself indicate that the maximum funding available under any specific entrepreneur support category is $25,000 per year. Can the Minister please clarify first what is meant by the term "entrepreneur support category" in the SEED policy, and are there separate pots of funding under the SEED umbrella? Thank you.
There are a number of sub-programs described in the SEED policy that fall under that entrepreneur support category, and there is no specific pot of funding associated with each. Generally, we have $4 million fund that supports economic development in our communities.
Can the Minister speak to what is the maximum amount available to an eligible business under SEED, and can an applicant seek funding under more than one of these entrepreneur support categories?
The maximum available for any individual business under regular SEED programming in a given year is $25,000 and up to $30,000 with a Ministerial waiver. Applicants can apply for any type of support. The limit is on the total quantum. The one exception is for strategic initiatives, with up to $75,000 allowed. This was introduced as a pilot program two years ago, and the intention was to support larger projects that could have a real impact in terms of investments in local employment and communities. We had previously targeted two strategic investments per region at $75,000 apiece. This year, we are currently targeting one strategic investment per region in order to make as much funding available as possible to as many NWT businesses. However, as reflected in the guidelines released on May 11th, our approach is one of flexibility. I would encourage anyone who has been rejected under the SEED funding to follow up with my office and we will look at their application on a case-by-case basis.
As I alluded to in my Member's statement today, one of the most difficult parts about this policy is the market-disruption clause. Is the Minister willing to suspend or remove the market-disruption provision in the SEED policy so that existing NWT businesses can be assured of access to this funding? Thank you.
Thank you, Member for Kam Lake. Minister of Industry, Tourism and Investment.
The SEED Program contains a market disruption provision in order to refrain from providing businesses with funding for investments when their competitors have funded similar improvements on their own. As with any government program, the objective is fairness. However, in light of COVID, we may want to review this approach in order to support businesses that need to pivot. The challenge will be funding business improvements or COVID pivots when their competitor across the street funded such improvements on their own. That said, again, I'll note our flexible approach, given the current circumstances.
I do want to thank the Member for bringing this to my attention. I will ask my department to consider how we can support Northwest Territories businesses as they prepare to operate in this new COVID reality and do so in a way that is fair. I will keep the Member apprised on what this department is able to recommend within the policy before the end of next week. Thank you, Mr. Speaker.
