Glossary – D to F

E

Economic development

The deliberate effort to improve the economy of a specified geographic area, which can be as large as an entire nation or as limited as a city neighbourhood.

Eligible project costs

The costs associated with implementing a business project that can be considered eligible for ABC support. Depending on the nature of your project, these can include:

• capital costs,
• costs of shares and assets,
• operating costs,
• marketing costs,
• costs associated with providing financial services and business services, and
• costs associated with obtaining appropriate training and/or mentoring services.

Entrepreneur

Someone who establishes and operates a business entity to offer a new or existing product or service into a new or existing market, whether for profit a or not.

Equity

In the context of program eligibility, ABC defines equity as cash equity. Applicants may generate cash equity from personal savings, by pledging personal assets as collateral against a loan from a financial institution (these assets are not to be used in the business and must be repaid from personal, not business sources), or be made up (in part) from First Nation or other government contributions. For community-owned corporations, assets used as collateral for equity must be those over which the community has full discretionary authority.

At least one half of the applicant's equity investment in a project must come from personal resources. Money from First Nation or public sector resources may be considered equity, provided that the applicant has full discretion over the funds. ABC considers funding from another government department specifically for a project to be "other project financing" and does not treat it as equity.

Note: In-kind contributions or non-cash assets cannot be included as part of your minimum cash equity investment.

External Delivery Organization

An Aboriginal organization in an established partnership agreement with the Government of Canada to deliver the ABC program on behalf of Industry Canada, particularly in rural and remote areas. These are sometimes referred to as XDOs.

F

Financial services

In the context of ABC’s eligible project costs, financial services are defined as contributions, loans, loan guarantees, bridge financing, venture capital, equity financing, leasing, or other similar financial services provided to Aboriginal businesses.