Yellowknife (Sep 27/04) - The Northwest Territories Business Credit Corporation (BCC) is funded by the territorial government with taxpayers' money.

The BCC is the lender of last resort for Northern businesses and a developmental agency for higher risk entrepreneurial ventures.

Its origins go back to 1970 when the Small Business Loan Fund was created by Indian and Northern Affairs Canada. The territorial government took control of the fund in 1977. In 1982, it was renamed the Business Loan and Guarantees Fund.

BCC was incorporated under the BCC Act of 1991, and took over assets of the Business Loan fund the next year. The borrowing limit can be increased to $50 million, with authorization from the Financial Management Board. In 1995, the fund limit was $23 million and rose to $38 million in 1999.

The BCC also receives an operating contribution from the government, $796,000 in 2004-2005.

Seven people are listed as employees of the BCC in the government's telephone directory.

The board of the BCC is comprised of chairperson Kimberly Staples of Yellowknife, vice chair Darrell Beaulieu of Ndilo, and directors Michael Maher of Hay River, Alison de Pelham of Fort Simpson, Eddie Dillon of Tuktoyaktuk, Jackson Lafferty of Rae-Edzo, Stephen Cuthbert of Fort Resolution and Judi Tutcho of Norman Wells.

Loan highlights:

- BCC loaned $1.8 million to Aurora World Corp. Aurora World is a Yellowknife Northern Lights viewing and tourism company. At the end of April, the company filed a notice of intent to make a proposal under the Bankruptcy and Insolvency Act. A restructuring proposal was unanimously adopted by creditors last week.

- On June 18, 2002, the Black Knight pub in Yellowknife received a $250,000 loan

- The Business Credit Corporation 2003 annual report states it forgave $205,438 in loans to South Nahanni Air.

- On Sept. 17, 1996, Target North of Fort Smith received a $200,000 loan. As of March 12, 2004, the loan was in arrears $219,731.