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Aboriginal BankingCatherine Debassige, Manager Aboriginal Business Services, ON
December 2011
2 Aboriginal Banking
BDC Aboriginal Banking Objective:
To provide an overview of BDC’s Aboriginal Banking business solutions and Aboriginal market activity, while creating strong alliances with Aboriginal service providers to leverage Aboriginal business opportunities in Canada.
3 Aboriginal Banking
Aboriginal Banking Role
> Create Awareness
> Provide Expertise to BDC Employees & Liaise with Aboriginal Businesses
> Create, Maintain and Enhance Alliances in the Aboriginal market
4 Aboriginal Banking
BDC Aboriginal Banking Initiatives:
In addition to our existing business solutions, we have developed the following:
>Growth Capital for Aboriginal Business
>Loan Loss Reserve
>National Consulting Strategy
>Aboriginal Business Development Fund
>Peer Lending Circles
5 Aboriginal Banking
Aboriginal Banking Youth Initiatives:
> E-Spirit National Aboriginal Youth Business Plan Competition
> Aboriginal Banking Newsletter
> SOAR Magazine
> Internship / Summer Employment
Financing
7 Aboriginal Banking
GCAB: Growth Capital for Aboriginal Business
> Up to $25,000 for start-up businesses
> Up to $100,000 for existing businesses
> Access to other BDC loans to top up financing requirement
> No application or annual fees
> Flexible debt to equity
> Competitive interest rate
> Interest rebate for the community
> For on-reserve or off-reserve lending
8 Aboriginal Banking
GCAB Financing Example:
BDC financing to complement other lenders:
Benefit: Start-up business, operating on-reserve
Project Amount Financing Amount
Purchase equipment $185,000Aboriginal Business Canada
$82,000
Working Capital $ 58,000 Canadian Youth Business Fund $11,000
BDC Financing: GCAB $25,000
BDC Financing: Working capital $75,000
Shareholder’s investment $50,000
Total $243,000 Total $243,000
Loan Loss Reserve
10 Aboriginal Banking
Proposal Overview
> Intent is to make financing available to medium and larger First Nation businesses located on reserve, under commercial terms
> A majority owned (51% ownership) Status Indian or First Nation corporation or business, whose primary assets to secure loan are located on-reserve.
> Loans to individual businesses can be issued from $250,000 up to $500,000.
> Loans to First Nation community-owned businesses can be issued up to $5 Million.
11 Aboriginal Banking
Aboriginal Financing Example
Loan Loss ReserveComplementary lending and use of the LLR
Benefit: Reopen a mill on-reserve land previously owned by a non-Native company, where 80 people had been laid off.
Project Amount Financing Amount
Equipment Upgrades $753,000 BDC Financing $344,000
Refinance Term Debt $ 232,000 Aboriginal Business Canada $200,000
Contingency Costs $34,200 2 CFDC Partners $300,000
Consulting Fees $16,800 First Nation’s investment $117,000
First Citizens Fund $75,000
Total $1,036,000 Total $1,036,000
Consulting Strategy
13 Aboriginal Banking
Consulting Strategy
> Depth of experience in our roster of management consultants
> Understand a desire exists to include knowledge transfer, built into consulting projects with Aboriginal clients, focus on implementation, support.
> Examples of projects completed:
> Marketing Plans, Business Plans, Feasibility
> Quality Management, ISO, Operational Efficiency
> Information and Communication Technology
> Human Resources, Enhancing Management, Leadership
14 Aboriginal Banking
Sugar Cane Development Corporation Testimonial
Needs> Faced with rapid growth – the wood manufacturing plant alone has undergone a
major expansion over the past three years and employs up to 40 community members – Sugar Cane Development’s board of directors recognized the need to become ISO certified to ensure that formalized processes were being applied throughout the corporation.
Results> The new quality management system has instilled an openness and
transparency across the corporation, improved time management procedures, and allowed Sugar Cane Development to better serve its clients.
CLIENT TESTIMONIAL : “As a result of becoming ISO certified, we are able to serve our clients more effectively and consistently. We recommend BDC to anyone who wants to improve their business.” – MARG SHELLEY,
Sugar Cane Development Corporation
Publications
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Aboriginal Banking Newsletter
> Client profiles to share success stories of entrepreneurs
> Recommended by BDC business centres
> Internal and external distribution, with 4,000 copies of each issue printed
> National recognition for the client
17 Aboriginal Banking
SOAR Magazine
> Focus on education and life experiences
> Stories about Aboriginal youth role models who succeed in finding balance in their lives
> Internal and External distribution with over 4,000 copies of each issue printed
> E-Spirit Special Edition produced each year showcasing the event and the winners
Aboriginal Student Employment
19 Aboriginal Banking
Annual Employment Programfor Aboriginal Youth
Goal:
Increase Aboriginal employment at BDC (full-time positions)
> Summer employment and Internship opportunities for College and University students
> Students must have completed at least one year at post-secondary institution in order to qualify
> 20 positions available across Canada each year, online application
20 Aboriginal Banking
Summary: BDC Aboriginal Banking
> Consider BDC Financing and Consulting to support business start up and growth
> Speciality in custom solutions, flexibility, work in partnership with other service providers, funders and lenders.
> For more information on BDC business solutions, visit:
www.bdc.ca
www.bdc.ca/espirit
1 888 INFO BDC
www.bdc.ca
Catherine DebassigeManager, Aboriginal Business Services
Serving Ontario
T 705 670-6486 │ [email protected]