2-02406

FORT FRANCES BUSINESS AND SERVICE CORPORATION TO PROVIDE ENHANCED FINANCIAL AND BUSINESS SERVICES TO ABORIGINAL ENTREPRENEURS

FORT FRANCES, ONTARIO (October 15, 2003) - On behalf of the Government of Canada, the Honourable Robert D. Nault, Minister of Indian Affairs and Northern Development, today announced that Aboriginal businesses in the Fort Frances area will receive financial and business services from the Fort Frances Business and Service Corporation (FFBSC), an Aboriginal corporation.

"With these increased services, Aboriginal organizations will receive more support to better contribute to the economic development within their communities," said Minister Nault. "We believe that this collaboration will allow First Nation businesses to grow within their respective communities and further establish themselves in the business world in general."

FFBSC's financial services will include various types of loans including micro loans to a maximum of $20,000 as well as medium-to-large loans. Micro loans will provide start-up capital for new entrepreneurs, while medium-to-large loans will be used to expand the operations of established businesses. The business services provided include opportunity identification, business planning, human resource planning, marketing, mentoring and aftercare (i.e., additional support following the set-up phase of a business).

FFBSC will be a corporation owned and controlled by Aboriginal people. The sole shareholder in the corporation will be Pwi-Di-Goo-Zing Ne-Yaa-Zhing (PWI) Advisory Services, the administrative and economic services delivery arm of the Fort Frances Chiefs' Secretariat. "This is something that we have needed for a long time to further economic and social development" said Jim Leonard, Executive Director of the PWI.

Five stakeholders will contribute services and funding to FFBSC. These parties include PWI, National Aboriginal Capital Corporation Association (NACCA), the Business Development Bank of Canada (BDC), FedNor (the Federal Economic Development Initiative for Northern Ontario), and Indian and Northern Affairs Canada (INAC). PWI will provide $100,000 annually for five years, and additional loan capital may be available through NACCA through the Access to Capital Program. BDC will provide $250,000 in capital for a micro credit loan fund. FedNor and INAC funding will be used to support management and lending operations. FedNor will provide $120,000 over two years and INAC will invest $320,000 to assist with start-up and operating costs for the initial 18-month period. Future INAC funding will be determined based on needs and demonstrated results.

"Access to capital is critical for Aboriginal business growth as it is for all small businesses in Northern Ontario," says the Honourable Andy Mitchell, Secretary of State (Rural Development) (FedNor). "By supporting lending, counselling and advice to Aboriginal entrepreneurs, FedNor is in turn building strong communities throughout Northern Ontario."

"This unique approach, based on a partnership perspective, responds to the real needs of Aboriginal communities," said Michel Vennat, President and CEO of the Business Development Bank of Canada. "These new services offered will assist in enhancing the management know-how of Aboriginal entrepreneurs while providing them with the financial support they need to create their business or help their current businesses grow and prosper," added Mr. Vennat.

For further information, please contact:

Patricia Valladao
INAC Communications
(819) 997-8404

Jim Leonard
Pwi-Di-Goo-Zing Ne-Yaa-Zhing Advisory Services
(807) 274-8531

Backgrounder - Fort Frances Business and Service Corporation

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