What are they?

The Equity Programs include the Economic Development Opportunity Fund, the Resource Acquisition Initiative and the Major Business Projects Program. The Equity Programs provide financial aid in the form of matching equity funding. The objective is to use the funding to obtain conventional debt financing for business start-ups, expansions and acquisitions. First Nation, Inuit and Innu businesses receive the funding through their Community Economic Development Organization.

Who may apply?

First Nation, Inuit and Innu businesses may apply through their Community Economic Development Organization.

What activities qualify?

The Equity Programs fund the remaining equity gap after all other potential sources of funding have contributed to their maximum toward the financing of the business.

These programs will not fund business lines that fall outside the public interest, or are contrary to federal policies, or fall within the mandates of other governments or other federal departments.

What are the funding limits?

• Program contributions cannot exceed $3 million.
• Program contributions will not exceed the equity gap.
• Program contributions will not exceed the equity contribution of the business applicant.
• Program contributions will not exceed 25 percent of eligible capital and operating costs.
• Federal contributions will not exceed 40 percent of the total eligible capital and operating costs for projects where INAC’s contribution is up to $500,000 and will not exceed 25 percent for INAC contributions greater than $500,000.
• The business applicant must contribute at least 10 percent towards eligible capital and operating costs in the form of cash.
• Where community control or ownership of the business is less than 100 percent, INAC will fund a portion of the equity gap in keeping with community ownership or control of the business.
• Funding will be directly related to the community economy and other benefits for First Nation, Inuit and Innu communities.

What information is required?

The applicant must submit a viable business plan which includes:

• a description of the business;
• a description of its location;
• uses of project funds;
• project funding sources;
• a description of how the business will be managed and administered;
• the business labour force;
• facilities and equipment;
• markets and sales plans;
• operations and suppliers;
• regulatory issues;
• environmental effects and proposed mitigation measures, if necessary;
• financial viability;
• community economy and other benefits; and
• a description of initiatives to secure funding from other sources.

How is the program delivered?

Applications are submitted to the INAC regional office or, where applicable, the Project Review Committee secretariat. Projects are reviewed and a funding decision is made. Where projects are approved, INAC enters into funding agreements with the Community Economic Development Organization. Under the agreement, INAC provides funding to the Community Economic Development Organization, which is required to transfer the funds to the business. Recipients are expected to report on the implementation and results of their projects.

Applicants are encouraged to submit a brief Statement of Intent, prior to submitting a full application. After reviewing these Statements of Intent, INAC will indicate whether the project meets program criteria, and will advise the applicant on the development of the full application.

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