The Commitment Certificate / Letter of Support
In some situations, the officers might not be able to make a decision because of the lack of documentation or information. Situations could also arise where the officers have serious doubts about the legitimacy of the documents submitted. In this scenario, the officers would need to:
- Write to the applicant and explain their concerns, while enabling the applicant to respond to the concerns raised via correspondence or documentation and / or an interview or,
- Refuse the application
The Essential Information Required for Business Incubators
The officers would also need to review the combined information specified in the term sheet or the client agreement. Thereafter, they would need to ensure that the commitment certificate complies with all the criteria given below. An ideal commitment certificate would need to:
- Identify the applicant clearly
- Confirm that the business incubators have accepted the applicant’s qualifying business into their business incubator program
- Specify the duration for which the applicant would need to be in the business incubator program
- This condition would apply if the documents highlight or mention the establishment of such a duration
- Describe the nature of the business operations that the applicant intends to carry out
- Details the applicant’s role in the business
- Confirms that the applicant has complete control over the intellectual property or other assets that the applicant is bringing to the business
- Describes the legal and financial structure of the business
- Clearly identifies the role of any other person who holds or whom the business incubators expect might hold an interest in the business
- In this scenario, the commitment certificate would need to describe the role of these individuals clearly
- Confirm that the business incubators have performed a due diligence assessment of the applicant and the business (including the provenance of funds)
- Specify all the terms and conditions applicable to the business incubator program or to the commitment made by the business incubators and,
- Confirm that the business incubators have accepted the business into the business incubator program because it is a qualifying business
The Essential Information Required for Angel Investor Groups or Venture Capital Funds
The officers would also need to review the combined information specified in the term sheet or the client agreement. Thereafter, they would need to ensure that the commitment certificate complies with all the criteria given below. An ideal commitment certificate would need to:
- Identify the applicant clearly
- Describe the nature of the business operations that the applicant intends to carry out
- Details the applicant’s role in the business
- Confirms that the applicant has complete control over the intellectual property or other assets that the applicant is bringing to the business
- Describes the legal and financial structure of the business
- Clearly identifies the role of any other person who holds or whom the business incubators expect might hold an interest in the business
- In this scenario, the commitment certificate would need to describe the role of these individuals clearly
- Confirm that the designated angel investor groups or the designated venture capital funds have performed a due diligence assessment of the applicant (including the provenance of funds), the business and the investment
- Confirm that the business incubators have accepted the business into the business incubator program because it is a qualifying business and,
- Specify the amount of the investment and any terms and conditions that may apply to the investment or to the commitment
Reviewing Canada Start-Up Business Commitment Certificate or the Letter of Support