Inuvik (Oct 16/06) - Many people in the Beaufort Delta have an idea for a small business. It could be a one-car taxi company, a corner store, or the sale of traditional crafts.

But sometimes, there's just not enough money to get started.

This is where people like Brent Kay come into the picture.

As the general manager of the Western Arctic Business Development Services' bureau in Inuvik, Kay helps to review applications for loans and grants.

He explains that his office works exclusively in the Beaufort Delta, providing aid to business owners.

It is affiliated with the NWT's department of Industry, Tourism and Investment, he said, and offers an alternative to commercial banks.

"We accept risk that's far higher than might be acceptable to conventional loaners," he said. "But since we're local, can meet people. That face-to-face contact lets us make an assessment of character and develop long-term relationships.'

Inuvik's branch of the Western Arctic Business Development Services bureau is one of seven Economic Development Offices in the NWT, serving under the umbrella of the Pan-Canadian Community Futures Group.

These bureaus serve Lli Goline/Norman Wells, Behchoko (Rae-Edzo), Fort Smith, Hay River, and Liidlii Kue/Fort Simpson.

In 2005, they financed 125 loans to businesses in the NWT, totalling nearly $4 million in investment.

Ron Rogers, loans officer for Western Arctic Business Development Services, said the Inuvik office approves about 30 loans a year.

As is the case for all economic Development Offices, it gives the same rate to everyone, which is the Bank of Canada's "prime rate", plus two per cent.

On Oct. 11, for instance, this rate was eight per cent. Kay said this is a competitive rate, especially since some banks won't invest in Northern businesses deemed risky.

"In commercial lending, when the risk increases, the interest increases. But we don't look at risk, No matter whose buying, they get two over prime," he said.

The group receives 100 per cent of its operating budget from the NWT department of Industry, Tourism and Investment, and the pool used for loan money was created in the 1990s when the Pan-Canadian Community Futures Group was funded by Industry Canada.

Therefore - as a territorial/federal government agency - Kay said his group has a social responsibility to uphold.

"Our end goal is to create employment," he said. "People will come to us with an idea, but maybe without a concrete plan. In that case, we'll help them put together a business plan."

As Kay explained, this mandate also applies to things besides loans.

He said the office also helps with letters of credit and "bid bonds," essential for construction companies.