Indigenous Cannabis Business Fund — Business Planning, Design, and Capital
Support for Indigenous business development in the cannabis sector
At a glance
Eligible Funding
- Max. $250,000
Timeline
- Open Date : April 03, 2023
- Closing date : September 30, 2023
Financing Type
Grant and Funding
Eligible Industries
- All industries
Grant Providers
- New Relationship Trust
Status
Closed
Overview
Get up to $250,000 in funding to cover the cost of licensing and permitting as well as make capital available to support the launch or expansion of businesses in the cannabis industry.
Eligibility criteria
- First Nations businesses and Indigenous entrepreneurs and businesses must have a minimum of 51% indigenous ownership of the underlying business.
- Indigenous ownership and control must at minimum be in proportion to the amount of equity invested in the business.
- Grants are not a stand-alone source of funds; applicants must be willing and able to pay and share in the costs of the project.
- On-Reserve projects must provide reasonable evidence of community engagement.
- On-Reserve projects must provide evidence of First Nation government support, expressed through a Band Council Resolution or equivalent.
- On-Reserve projects – If applicable, the status of an unregulated business transition to the regulated market (unregulated businesses must cease operations prior to disbursement of ICBF Grant).
- On-Reserve Projects – where a business will seek both federal (production) and provincial (retail) licenses, whether the First Nation has entered into, or plans to enter into, a section 119 government-to-government agreement with the Province enabling participation in both production and retail simultaneously.
- One ICBF Grant per Project, but multiple Indigenous owners can be included under one grant.
- Financing requirements: ICBF Grants for certain project types (e.g., acquisitions, capital costs, infrastructure, etc.) must be applied for in conjunction with reasonable assurance of commercial loan financing, alternative financing, or an equivalent amount of cash equity being in place to access the non-repayable grant.
- Applicant(s) generally must have the financial capacity to provide between 25% to 60% of the project costs, through cash equity and/or loan financing, depending on the project type and subject to the ongoing program criteria that may be amended from time to time.
Who is eligible
- Cultivation
- Processing
- Distribution
- Ancillary services
Eligible expenses
- Business planning costs
- Business advisory services and staff training
- Business capitalization (business start-up, business expansion, etc.)
Eligible projects & activities
- Establishment of new businesses within the regulated cannabis industry
- Expansion of existing regulated cannabis businesses
- Transition of existing unregulated cannabis businesses into the regulated industry
Evaluation & selection criteria
- Community engagement stream (1) funding will incorporate a basic criteria-based process for selecting approved recipients.
- Business Planning, Design, and Capital stream (2) funding will incorporate best practice business assessment policies and procedures as carried out by one of the AFIs.
How to apply
- Step 1: Fill out the Expression of Interest (EOI) Form on the New Relationship Trust website.
- Step 2: After submission, expect a response within 5 to 7 business days for further discussion and next steps.
- Step 3: Following the initial contact, you will be connected with an Aboriginal Financial Institution (AFI) in British Columbia.
- Step 4: The AFI will conduct standard screening and due diligence procedures to assess project viability and determine the appropriate grant amount.
- Step 5: Approval decisions will be based on the criteria outlined for community engagement and business planning, design, and capital streams.
- Step 6: Successful applicants will be notified of approval and funding details by the New Relationship Trust or the assigned AFI.
Additional information
- Applicants must be willing and able to share in the costs of the project.
- Reasonable evidence of community engagement is required for on-Reserve projects.
- First Nation government support must be evidenced through a Band Council Resolution or equivalent for on-Reserve projects.
- Unregulated businesses must cease operations prior to disbursement of the ICBF Grant for on-Reserve projects.
- Projects seeking both federal and provincial licenses must have or plan to enter a section 119 government to government agreement with the Province.
- One ICBF Grant per Project is allowed, with multiple Indigenous owners possible under one grant.
- Applicants must demonstrate financial capacity to provide between 25% to 60% of project costs through cash equity or loan financing.
Apply to this program
