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BDC's specialized financing increases access to capital for Aboriginal entrepreneurs wanting to expand an existing business or start a new one, on or off a reserve in Canada.
Advantages
- BDC's first-hand knowledge of the challenges faced by Aboriginal entrepreneurs;
- Interest rates and security requirements determined on a project-by-project basis;
- Payments of principal may be deferred for the first year; stepped and seasonal payments are available where appropriate.
Business management support
- Support is available through a special alliance with CESO Aboriginal Services, which includes ongoing mentoring and business management counselling for the first two years following loan approval.
- Costs for management support can be incorporated into the financing package.
Security
Security can 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.
Community support
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.
How can BDC help you?
BDC's Aboriginal financing can provide support to businesses that:
- Have a commercially viable business proposal;
- Have an acceptable level of management expertise;
- Demonstrate financial commitment;
- Are willing to take part in a mentorship program;
- Operate on or off reserve in Canada.
Possibilities
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