Eligible applicants for funding under the Corporation’s loans programs include
Aboriginal people (status or non-status First Nation, Inuit and/or Métis people living on
or off-reserve) and Aboriginal businesses who reside/operate within the boundaries of the
Treaty #3 area, with a focus on the Corporation’s core service area i.e. band members
from the seven First Nation communities of the Rainy Lake Tribal Area. An Aboriginal
business is described as a business which is wholly or partially owned by status or nonstatus
First Nation, Inuit and/or Métis person(s) living on or off-reserve. Aboriginal
ownership must be a minimum of 51%.
In cases where Aboriginal ownership is present but is less than 51%, the business must
provide a direct benefit to the Aboriginal community, such as providing goods and/or
services to the Aboriginal community and/or creating employment for Aboriginal people
of the Rainy Lake Tribal Area. Under the ABDF Loan Fund, it is necessary to obtain
approval from the National Director Aboriginal Banking before proceeding with
accepting an application of this nature. Under the Enhanced Access Loan Fund, consent
must be obtained from the Loan Committee/Board of Directors, supported by written
evidence of status exemption via Band Council Resolution from the appropriate First
Nation community or communities.
Eligible businesses (existing or start-up) must be located within the Treaty #3 area.
Question for Harry: Is eligibility under ABDF: 1) All of Treaty #3 or just Rainy
Lake Tribal Area? 2) Only First Nation applicants, or all Aboriginal applicants?
Not clearly defined in BDC MOU (pages 6 and 7).
Applicants must provide evidence of their Aboriginal ancestry in the form of a registered
Status Card, membership card from a recognized provincial or territorial Aboriginal
organization, or other recognized documentation, as deemed acceptable.
Enhanced Access Loan Fund:
The Corporation will decide on a case-by-case basis the extent of requirements for
owner’s equity under the Enhanced Access Loan Fund. As a guideline, the client is
required to invest a minimum of 10% of the capital costs of the project in the form of
cash. While equity will normally be in the form of cash, it can also take the form of
personally-owned security, provided the company does not have a debt-to-equity ratio of
greater than 3.5 to 1.0. In cases where the value of the fixed assets are substantially
greater than what is recorded on the balance sheet, appraisal surplus equity may be
considered, provided the value is supported by an appraisal of the assets in question.
Sweat equity cannot be considered as a component of the equity.