Repayable contribution (regional development agency)
A repayable contribution is financial assistance that a client is expected to repay. The Atlantic Canada Opportunities Agency classes them as unconditionally repayable or conditionally repayable, depending on whether repayment turns on conditions in the contribution agreement.
A business being sold may have received one from a regional development agency. ACOA says its Business Development Program offers repayable funding that is interest-free and unsecured. See stacking CSBFP, BDC and credit union loans.
Two kinds, in ACOA’s terms
ACOA says unconditionally repayable contributions must be repaid without qualification. Conditionally repayable contributions become repayable, in whole or in part, only when conditions specified in the contribution agreement come into effect.
- Ask for the contribution agreement and read what it says about a change of ownership.
- Ask the agency whether notice or consent is needed for the sale.
- Ask for the outstanding balance and repayment schedule.
- This entry draws on ACOA’s program; check the terms of the agency that funded the business.
Compare it with growth and transition capital.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Atlantic Canada Opportunities AgencyGovernmentRepayable Contributions Portfolio of the Business Development Program
- 02Atlantic Canada Opportunities AgencyGovernmentBusiness Development Program
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