ARCHIVED - Annex E – Aboriginal Business Development Programs – At a Glance

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  Aboriginal Business Development (ABD) Access to Capital (ATC) Program Financial Institutions Program (FIP) Major Resource and Energy Developments (MRED) Loan Loss Reserve (LLR)
Brief Description The ABD provides financing, business support and information to increase the competitiveness and success of Aboriginal businesses in Canadian and world markets. The ATC program provides assistance to strengthen the network of Aboriginal-controlled developmental lending institutions through funding agreements with the National Aboriginal Capital Corporation Association (NACCA) targeted at providing support services and training. The FIP provides contributions to the establishment, expansion or diversification of Aboriginal Financial Institutions. The MRED, part of the Framework Action Plan, provides financing to support the planning and feasibility work for major projects, and provides equity contributions to leverage commercial financing. The LLR, part of the Framework Action Plan, encourages commercial financial institutions to provide debt financing to First Nation businesses with assets on reserve.
Primary Stakeholders Individual Aboriginal entrepreneurs, new and existing business and Aboriginal organizations. National Aboriginal Capital Corporation Association (NACCA) or any recognized Aboriginal Financial Institution (AFI). National Aboriginal Capital Corporation Association (NACCA) or any recognized Aboriginal Financial Institution (AFI). Individuals of Aboriginal heritage (Status or Non-Status Indians, Métis or Inuit) or a majorityowned Aboriginal business. Aboriginal corporations or businesses (individual or community-owned) that are beyond the normal risk tolerance of a commercial financial institution.
Eligible Activities
  • Business Advisory Services and Training
  • Commercial Ventures
  • Market Development
  • Business Development and Advocacy Activities
  • Interest-rate buy downs
  • Enhanced access loan funds
  • Support, training and organizational development
  • Establishment, expansion or diversification of an AFI
  • Developmental loan funding, loan guarantees and other related financial services to Aboriginal businesses
  • Establishment and operation of one National Association
  • Institutional Development
  • All eligible activities for ABD program
  • Establishment or expansion of a private equity instrument to support business participation in major resource and energy projects
  • Establishment or expansion of a loan loss reserve dedicated to Aboriginal business development, including out of pocket expenses
Major Audit and Evaluation Findings
  • Confirm accessibility for all Aboriginal Canadians
  • Increase the authority level for Aboriginal Financial Institutions to further delivery the ABD programs
  • N/A - this program is fairly small in scope
  • Level the playing field for AFIs – work together to better coordinate available funding to reduce disparities and build on experience gained
  • Standardized skills across the AFI network
  • Consult with AFIs to better understand concerns and establish a plan to address them
  • A management control and accountability framework should be established to better guide the management and operations of AFIs and Access to Capital programming
  • Work with AFIs and NACCA to develop a core set of financial indicators
  • N/A – this program was established recently and, as a result, has not undertaken an audit or evaluation process
  • N/A – this program was established recently and, as a result, has not undertaken an audit or evaluation process
Budget 2010-2011* The 2010-2011 collective budget for these programs is approximately $45.7 million.

* Source: Based on 2010-2011 Main Estimates, Grants and Contributions.

 

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