This website will change as a result of the dissolution of Indigenous and Northern Affairs Canada. Consult the new Crown-Indigenous Relations and Northern Affairs Canada home page or the new Indigenous Services Canada home page.
This website will change as a result of the dissolution of Indigenous and Northern Affairs Canada. Consult the new Crown-Indigenous Relations and Northern Affairs Canada home page or the new Indigenous Services Canada home page.
The Department of Indian Affairs and Northern Development (DIAND) provides funding for lands and environmental management and economic development as matter of policy.
Supporting land management and economic development leads to greater participation in the economy and improved economic prosperity for Aboriginal Canadians.
In 2009, the Government released a comprehensive Federal Framework for Aboriginal Economic Development to align federal actions to better support the participation of Aboriginal Canadians in the economy. To respond to the opportunities and challenges facing Aboriginal economic development and support greater participation of Aboriginal Canadians in the economy, three complementary programs exist to (1) improve the economic potential of First Nation lands; (2) support Aboriginal participation in economic opportunities and (3) strengthen Aboriginal entrepreneurship.
The Lands and Economic Development Services Program (LEDSP) provides support to First Nation and Inuit Communities to assist with enhancing the economic development, land and environmental capacity of communities and to support the establishment of the conditions for economic development to occur, increasing their participation in the economy. LEDSP has four components:
The Community Opportunity Readiness Program (CORP) provides project-based funding for First Nation and Inuit Communities for a range of activities to support communities' pursuit of economic opportunities. Where First Nation and Inuit communities, or their representative organizations, identify opportunities and lack the financial resources to pursue them, CORP will allow them to submit proposals to obtain additional funding.
The Aboriginal Entrepreneurship Program (AEP) seeks to increase the number of viable businesses in Canada owned and controlled by Aboriginal Canadians, provide a supportive business environment for Aboriginal Canadians and advocate and inform employers about the hiring of Aboriginal peoples. AEP has two components:
|Legal and Policy Authorities (in chronological order)||LEDSP||CORP||AEP|
|Department of Indian Affairs and Northern Development Act, R.S.C., 1985, c. I-6, s. 4||Yes||Yes||Yes|
|Dept. Of Indian Affairs and Northern Development Act, R.S.C., 1985, c. I-6, s.4 - First Nations Land Management Act||Yes|
The lands and economic development programs support increased participation of Aboriginal communities in the Canadian economy and enable Aboriginal people to pursue opportunities for employment, income, and wealth creation.
The specific objectives of each program component are the following:
The expected results of LEDSP, CORP and AEP are directly aligned with the "Land and Economy" strategic outcome, the long-term objective of which is to realize full participation of Aboriginal individuals and communities in the economy. Performance indicators that apply to these programs will be included in the Lands and Economic Development Programs Performance Measurement Strategy.
|Category of Eligible Recipient||LEDSP Allocations||LEDSP Targeted||CORP||AEP|
|First Nation and Inuit communities and their governments, including Tribal Councils Table note 8||Yes||Yes||Yes||Yes|
|Cree Trappers' Association, Cree Outfitting and Tourism Association, and Cree Native Arts and Craft Association and the Inuit Art Foundation Table note 5||Yes|
|Organizations and associations controlled by Aboriginal people except for those with charitable or religious purposes Table note 9Table note 10||Yes||Yes||Yes|
|Non-Aboriginal organizations and associations, except for those with charitable or religious purposes Table note 1Table note 6||Yes||Yes||Yes|
|Aboriginal individuals, including businesses owned and controlled by Aboriginal people||Yes|
|Canadian owned and controlled banks, credit unions and trust companies authorized to make commercial loans and are provincially or federally regulated||Yes|
|Private Equity Providers||Yes|
|A provincial or federal crown corporation Table note 2||Yes|
|Municipal Governments, labour organizations, universities, colleges and other learning institutions Table note 3||Yes|
|The Province of Ontario, in relation to the Canada - Ontario Resource Development Agreement||Yes||Yes|
|Other persons performing delegated land management functions under Sections 53 and/or 60 of the Indian Act on behalf of First Nations||Yes||Yes|
|The Lands Advisory Board Resource Centre (LABRC) Table note 7||Yes|
|The Minister may, in exceptional circumstances, make contributions with respect to Aboriginal Business Development to other recipients for projects having a significant impact on Aboriginal Business Development Table note 4||Yes|
To be eligible, an initiative or project must support one or more objectives of this program.
The classes of eligible initiatives and projects are further described below.
All of the above plus:
Eligible initiatives under the CORP include:
Eligible initiatives under the AEP include:
|Eligible Expenditures||LEDSP Allocations||LEDSP Targeted||CORP||AEP|
|Salaries, wages and benefits||Yes||Yes||Yes||Yes|
|Overhead, including, but not limited to, rent, utilities, supplies, minor repairs and maintenance, accounting and audit services, and insurance||Yes||Yes||Yes||Yes|
|Minor machinery and equipment||Yes||Yes||Yes||Yes|
|Communications, including, but not limited to, development of content, translation, dissemination, advertising, and signage||Yes||Yes||Yes||Yes|
|Professional, consulting, advisory and other services, including fees, travel Table note 1, and report production||Yes||Yes||Yes||Yes|
|Attendance at or participation in training and professional development programs, conferences, workshops, seminars, events, events and meetings, including but not limited to tuition, registration, travel, testing and evaluation||Yes||Yes||Yes|
|Work experience including travel Table note 1||Yes||Yes|
|Preparation, organization and delivery of conferences, workshops, seminars, events, meetings and information sessions, including, but not limited to, room and equipment rentals, food and beverage, promotion, presenters' or facilitators' costs, travel Table note 1||Yes||Yes||Yes|
|Preparation, organization and delivery of training and professional development, including, but not limited to, curriculum and materials, rentals and travel Table note 1||Yes||Yes||Yes|
|Land surveys and appraisals||Yes||Yes||Yes|
|Awareness and information sessions, training, and communications relating to environmental promotion and compliance||Yes||Yes|
|Feasibility studies, marketing, advertising, and promotion||Yes||Yes||Yes|
|Costs related to economic infrastructure including, but not limited to, planning, design, identification, capitalization and acquisition of rights and rights-of-way||Yes||Yes|
|Capital costs relating the establishment, acquisition, expansion or modernization of an Aboriginal business||Yes||Yes||Yes|
|Capitalization costs including the establishment or expansion of financial instruments||Yes|
|Bad debt expenses and expenses associated with collections||Yes|
|Land/property acquisition costs by the Passamaquoddy Recognition Group on a time-limited basis until March 31, 2018 Table note 2||Yes|
|Payments for services that would normally be provided without charge (e.g. honoraria)|
|The operation, repair and maintenance of economic or municipal infrastructure|
|Economic infrastructure which has a reasonable expectation of capturing capital and operating costs through user fees and other means and can function as a commercial enterprise|
|Costs for services provided by a federal or provincial government|
The stacking limit maximum level of funding to a recipient from all sources (including federal, provincial/ territorial and/or municipal) for any one activity, initiative or project is 100 percent of eligible costs.
Recipients are required to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments (total government assistance) and other sources that are expected to be received. Financial reporting shall show all sources of funding received by the recipient. Provisions for repayment shall be included in the funding agreements.
LEDSP funding allocations for economic development take into account various factors such as the population of an eligible community.
Factors considered for determining LEDSP funding allocations for land management under the Indian Act include a community's land mass and the number of land management instruments registered in the Indian Land Registry System.
For land management under the First Nations Land Management Act, the amount of annual FNLM developmental funding and annual operational funding payable to each First Nation will be in accordance with the approved FNLM funding formulas.
Targeted Funding – LEDSP, CORP and AEP: The amount of funding is determined based on review and consideration of the proposal, and taking into account: the relevance of the proposal to the program's objectives and expected results; expected economic benefits accruing to Aboriginal individuals, businesses or communities; and the demonstrated need for federal funding. Contributions will be determined based on the minimum level amount to ensure that the project or initiative is realized in accordance with the proposed time-frame, scope and location. Funding will be limited by the amount of available funds. Assessments may be conducted by internal and/or external reviewers, at a regional or national level.
Further details on funding are found in the Type and Nature of Eligible Expenditures and Maximum Amount Payable sections of this document.
The following maximum amounts are established to ensure that the most extreme circumstances could be funded as necessary. Recipients are not entitled to the maximum amount. Actual funding will depend on the overall availability of funding and, where applicable, a review of the proposed project/initiative.
|Program||Eligible Initiatives||Maximum Annual Amount Payable Per Recipient|
|LEDSP – Core||Economic development activities including, but not limited to, capacity development, community economic development planning, and the development of proposals to lever financial resources||100% of eligible costs up to $3.0M|
|Initiatives that support First Nations support for communities that desire to take on a broad scope of land and environmental responsibilities, pursuant to sections 53 and 60 of the Indian Act, including land use planning, environmental management and compliance, on behalf of the Minister||100% of eligible costs up to $3.0M|
|Initiatives that support First Nations who are signatories of the Framework Agreement on First Nation Land Management, and are on the schedule for the First Nations Land Management Act (FNLMA)||100% of eligible costs up to $3.0M|
|LEDPS – Targeted||
Initiatives that support First Nations and Inuit communities to undertake economic development activities including, but not limited to, capacity development, community economic development planning, the development of proposals to lever financial resources.
Initiatives that support the development of land and resources under community control and access to opportunities from lands and resources not under community control.
Initiatives that support compliance with the statutory provisions of the Indian Act and the processing of land management instruments such as leases and permits.
Program management services in relation to community economic development.
Initiatives that support the activities of the Manitoba Treaty Land Entitlement Committee.
Initiatives that support First Nations participating in the Regional Lands Administration program performing land management activities.
Land/property acquisition by the Passamaquoddy Recognition Group on a time-limited basis until March 31, 2018.
|100% of eligible costs up to $10.0M|
|Initiatives that support Aboriginal environmental pollution prevention and improve environmental awareness and compliance||100% of eligible costs up to $10M|
|Initiatives that support the activities of LABRC in supporting First Nations interested in going through the FNLM process||100% of eligible costs up to $20M|
|CORP||Support for recipients to pursue eligible opportunities
Support for community supported businesses where there is an equity gap, including business advisory services and training, commercial development and market development
|100% of eligible costs up to $3M|
|Infrastructure development related to business development, but not related to a specific eligible business
|90% of eligible costs up to $10M|
|AEP||Establish or expand private equity instruments that foster the early and late stages of project development and help facilitate increased Aboriginal participation in major resource projects.
Support loan-loss mechanisms aimed at attracting more private sector financing for First Nation businesses.
Supporting the establishment and operations of one National Association to coordinate the activities of Aboriginal Financial Intuitions.
Establishing, expanding or diversifying the operation of an AFI that provides developmental loans, loan guarantees, and other related financial services to Aboriginal businesses.
Supporting the operations of eligible business development organizations and associations providing business and financial services to AFIs, including the ongoing monitoring of AFIs.
Providing an interest rate buy-down on loans obtained by AFIs from senior lenders for the purpose of developmental lending.
Institutional development, including training and development and business supports to AFIs and other business development organizations.
|100% of eligible costs up to $50M|
|Studies for feasibility, business planning, market assessments and related marketing activities, negotiation, information gathering, and diagnostic studies, consultations and other requirements with respect to establishing, expanding or diversifying the operation of an Aboriginal Financial Institutions||100% of eligible costs up to $250,000|
|Business advisory services and training||100% of eligible costs up to $1M|
|Commercial ventures, including business innovation/growth||75% of eligible costs up to $10M|
|Market development||100% of eligible costs up to $250,000|
|Business development and advocacy activities, including advocacy activities to educate and inform employers about the advantages of hiring Aboriginal peoples and activities to support partnerships with various stakeholders to increase the capacity of employers to recruit, promote and retain Aboriginal employees||100% of eligible costs up to $500,000|
Funding allocations under LEDSP will be paid in accordance with the formula described under the heading, "Method for Determining the Amount of Funding".
For targeted funding, payments will be made based on the achievement of pre-determined performance expectations or milestones and/or documented claims for reasonable eligible costs incurred for eligible expenditures, to be submitted by the recipient not more frequently than monthly.
Where it is essential to the achievement of the program objectives and specifically provided for in the funding arrangement, advance payments may be made in accordance with the cash management provisions of the Directive on Transfer Payments.
To simplify the administration of contributions, individual payments may be made that represent a higher percentage sharing ratio than that authorized provided that the total overall sharing ratio calculated on the total eligible costs for the project does not exceed the maximum sharing ratios. Payments made in a fiscal year shall not exceed a recipient's estimated cash flow requirements with respect to the Department's share of eligible expenditures for that fiscal year. However, a payment may be made in a fiscal year to cover the federal government's share of expected eligible expenditures to be incurred by the recipient during April of the following fiscal year when the Department deems it essential to meet the objectives of the funding agreement.
For targeted funding contributions to Aboriginal recipients, recipients are advised in the funding arrangement that AANDC may withhold funding otherwise payable for non receipt of annual audited financial statements, final accounting and other reports. A holdback of a portion of any payment will be realized when deemed appropriate based on the risk of non-performance or overpayment.
Applications by eligible recipients of LEDSP funding allocations are not required. Eligible recipients seeking to increase their level of responsibility for land management under the Indian Act or the First Nations Land Management Act will complete a readiness assessment which will be assessed by the Department.
Information that will be assessed includes, but not limited to:
Allocations are provided to First Nations participating in this program on an annual basis and commensurate with the level of responsibility for land management assumed under the Indian Act or the First Nations Land Management Act.
Targeted funding - Recipients will be required to submit sufficient information to determine that they are eligible recipients as well as any information required to assess the recipient and/or the project against the program assessment criteria. Required information may include, as appropriate:
In some cases, additional information may be required, such as:
Application requirements will be communicated to applicants by AANDC.
Types and levels of assistance will be commensurate with the assessment of the risk involved, the resources of the recipient and the benefits to the Aboriginal community or business. Assistance will generally be determined on the basis that the amount and level are the minimum required to ensure that the project proceeds and is keeping with the forecasted benefits to the Aboriginal community and/or business.
Requests for assistance will also be assessed on the basis of their relevance to the program objectives. Assistance will be provided only to those initiatives that would not otherwise proceed in the proposed location, proposed scope, or proposed time without such assistance.
For targeted funding, the following assessment criteria will be used as appropriate and relevant to determine the need, the amount and level, and the type of assistance to be offered:
The Recipient will be requested to submit data, schedules, plans and reports in sufficient detail to enable the Department to:
A monitoring plan will be developed for each project funded under this authority. The purpose of the monitoring plan will be to provide periodic information regarding the progress of the initiative against the milestones proposed in the application and to identify unanticipated risks or impediments to achieving intended results. The proposed level of monitoring will correspond to the level of risk associated with the project.
Reporting requirements will be determined by the Department for each project or initiative. Progress and financial reports will be required at a minimum on an annual basis by recipients. Recipients will also be required to submit a final report at the conclusion of a project, in accordance with the terms of the funding arrangements, for review and acceptance by the Department.
Where a program supports activities that may be delivered to members of either official language community, access to services from the recipient will be provided in both official languages where there is significant demand and Part IV of the Official Languages Act is applicable. In addition, the Department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in Part VII of the Official Languages Act.
Where a contribution is provided for the development of material in which copyright subsists, conditions for shared rights will be set out in the funding agreement.
Where a commercial entity is the recipient of a contribution under this program and where generation of profits is expect or likely to occur, the contribution will be partially or fully repaid, depending on the outcome of the project.
Contributions may be conditionally or unconditionally repayable and contribution agreements will contain the factors that determine whether and how the repayment is to be made and the amount of the repayment, the terms of repayment, and a description of the process to be used to monitor funding agreements and establish when repayments are due.
Contributions to commercial entities will normally be conditionally repayable. Repayment is provisional upon specific conditions occurring or being met. The amount to be repaid is to be commensurate with benefits which accrue to the recipient from the project. Specifically, the amount to be repaid will be based on success factors such as the achievement of sales forecasts, the expected return on investment, the recipient's financial position and ability to repay. Where due diligence indicates that the commercial entity's ability to repay the contribution is not dependent on the achievement of the success factors of the project, the contribution will be unconditionally repayable. Unconditionally repayable contributions are those which must be repaid, in part or in full, irrespective of the benefits resulting from the project.
The establishment of a repayment period will be based on such factors as the useful life of the funded assets, the duration of the project, the period during which the recipient will realize the benefits of the project, and the recipient's financial position and ability to repay. The terms of repayment are to be based on a fixed time schedule with due consideration to any seasonal nature of a recipient's operation with provisions for full repayment by a specified due date, not to exceed a period of 10 years from the project's completion date.
Recipients may be exempt from the requirement to repay a contribution when one or more of the following apply:
The Department's corporate finance systems will be used to assist in with the verification of invoice dates, appropriate follow-up on overdue accounts, viability reviews, collections or rescheduling decisions, and the handling of defaulted accounts.
Where a recipient delegates authority or further distributes contribution funding to an agency or a third party (such as an authority, board, committee, or other entity authorized to act on behalf of the recipient), the recipient shall remain liable to the Department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or redistribution of contribution funding.
Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.
For the purposes of receiving funding under the LEDSP funding allocation, the Inuit Art Foundation can neither transfer nor delegate funds to other agents.
Program Guidelines - Each program holds a corresponding set of program guidelines which include specific criteria supporting these terms and conditions. Recipients must act in compliance with the provisions outlined in these Terms and Conditions and the program guidelines.
Up-Front Multi-Year Funding - Where contributions are used to establish or expand private equity instruments that foster early and late stages of project development and help facilitate increased Aboriginal participation in major resource development and energy projects, or contributions to support loan-loss mechanisms aimed at attracting more private sector financing for First Nation businesses, an advance for the entire amount of the contribution (up to $10M) in year one of a multi-year agreement, where it is essential to the on-going success of the project, may be provided. Recipients of these contributions may carry forward any unused portion of the contribution into subsequent fiscal years.
Conflict of Interest - The Land Advisory Boards First Nation Land Management Resource Centre Inc. will be required to maintain and enforce their conflict of interest policy so that no member of its Board may benefit directly or indirectly from the operations of the Resource Centre, other than for the remuneration as a Director.