Growth Capital for Aboriginal Business

Eligibility Criteria

• with a commercially viable business proposal;
• with an acceptable level of management expertise;
• demonstrating financial commitment;
• willing to take part in a mentorship program;
• operating on or off reserve in all areas of Canada.

Eligible Area

All Canadian provinces and territories.

Eligible Activities

The loan can be used for acquiring fixed assets, financing franchise fees, covering start-up costs, developing new markets, or replenishing working capital depleted by capital expenditures.

Summary

Loan Features

• Financing of up to $100 000 for existing businesses and up to $25 000 for start-ups.
• Interest rates and compensation are determined on a project-by-project basis and reflect the risk associated with the proposal.
• Payments of principal may be deferred for the first year, stepped and seasonal payments are available, where appropriate.

Security

Security may include Band Council Resolutions and other letters of support when the business is located on Reserve land, realty mortgages, security agreements providing a charge on chattels and personal or corporate guarantees.

Special Provision

• BDC will refund a portion of the interest paid on a loan to a community organization or charity chosen by the borrower.
• It will be calculated at the rate of 0.5 % of the average loan balance with a minimum amount of $100 and paid annually after the first year of the loan.
• To qualify, the loan must be operating satisfactorily and be fully current.

Management Support

• The costs for management support can be incorporated into the loan.

Nova Scotia Contact(s):
See National Contact.