- 1. What is Aboriginal Business Canada?
Aboriginal Business Canada (ABC) is an Industry Canada program that promotes the establishment and growth of Aboriginal enterprise across the country. See About ABC for more information.
- 2. What are ABC’s program priorities?
Although supporting a broad framework of government objectives, ABC focuses on a specific set of priorities intended to promote the establishment and growth of Aboriginal firms. These priorities are:
- Innovation
- Trade and market expansion
- Tourism
- Youth entrepreneurship development
- Strengthening Aboriginal financial and business development organizations
- 3. Does ABC fund certain program priorities more than the others?
Projects falling under the youth entrepreneurship development priority make up about half of the current ABC contribution portfolio. However, there is no specific emphasis placed on one type of business activity over another.
- 4. Why is ABC part of Industry Canada?
Industry Canada has operated special Aboriginal business development programming for decades as part of its work to support opportunities for small and medium-sized businesses in all regions of Canada. The program is strategically situated in the department whose focus is helping Canadian firms to compete and be innovative in today's marketplace. The result is access to Industry Canada expertise and resources as well as to programming within the wider Industry Portfolio of departments and agencies.
- 5. Does ABC provide grants?
No. ABC provides the majority of its support in the form non-repayable contributions. Contributions may be repayable in some circumstances.
- 6. What’s the difference between a contribution and a grant?
Contributions are conditional transfer payments to an individual or organization for a specified purpose pursuant to a contribution agreement that is subject to being accounted for and audited. Should the individual or organization use the transfer payment in the manner specified by the contribution agreement, the government does not expect to receive any goods or services directly in return, to be repaid or to receive a financial return.
Grants are transfer payments to an individual or organization that is not subject to being accounted for or audited. Eligibility and entitlement for a grant may be verified or the recipient may need to meet pre-conditions. However, the government does not expect to receive any goods or services directly in return, to be repaid, or to receive a financial return, if the individual or organization meets all eligibility or other entitlement requirements. ABC does not issue grants.
- 7. How much funding can I receive?
The level of support ABC can contribute depends on the nature and scope of your project and an analysis of a number of factors, including the ABC-client cost-sharing ratio applied to various projects. The maximum contribution limit to individuals is $75 000 per project. It is important to note, however, that typical support is usually lower. For community-owned projects, the maximum contribution is $500 000. ABC’s actual investment will be limited to what is required to ensure that the project proceeds and is viable. Refer to question 8 in this section or ABC’s Investment Decisions Policy for more information.
- 8. Will the level of support ABC provide differ depending on the nature of my business activity?
-
Yes. As a broad guideline, ABC typically provides up to 75 percent of business planning costs, costs to develop new products, services, or production processes, or for marketing initiatives, business support and management training. We can provide 30–40 percent of costs for starting, expanding or modernizing a business, or in limited circumstances, for acquiring a business.
Project Cost |
Typical Contribution Level |
| Developing business plans, marketing plans or feasibility studies |
Up to 75% |
| Establishing/acquiring a business or acquiring information technology |
30–40% |
| Expanding a profitable business or developing new products, services or production processes |
30–40% |
| Inventory costs |
Discuss this with your officer |
| Operating costs |
Discuss this with your officer |
| Implementing marketing initiatives |
Up to 60% |
| Project-related management, technical and entrepreneurial training |
75% |
| Accounting and professional business advice after you start your business |
75% |
- 9. How many projects does ABC fund in an average year?
Out of a yearly average of 1400 submissions, approximately 1000 projects receive ABC funding in any given year. For example, in 2004–05, ABC received 1569 Statements of Intent, which resulted in 671 clients receiving funding for 1164 business projects.
- 10. What other sources of financial assistance are available to me?
Your development officer can assist you in identifying other possible sources of financing for your project, such as support from other federal, provincial, territorial departments and agencies. In addition, a number of online resources are available on our links page.
- 11. How does ABC help Aboriginal business development and financial organizations?
In addition to working with individual businesses, ABC in partnership with other federal departments and agencies, has helped to create a network of Aboriginal business development and financial organizations, such as Aboriginal Capital Corporations. ABC also delivers programs and services in partnership with Aboriginal organizations that provide business services and support to Aboriginal firms. For example, a number of Aboriginal-owned and operated organizations deliver the ABC program on our behalf, particularly in rural and remote areas.
