SOCCA — Term loan for Indigenous businesses
Wendake, QC, Canada
Term loan for Indigenous-led business projects
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Arts, entertainment and recreation
- Accommodation and food services
- Other services (except public administration)
- Public administration
grant_single|grantors
- SOCCA
grant_single|status
grant_card_status|open
grant_single_labels|preview
If your First Nations business is looking to start-up, expand, acquire a new business, you can get a competitive term loan to help cover up to 70% of the costs, so long as you can contribute at least 10% of the costs yourself.
grant_single_labels|terms_and_conditions
This term loan is specifically designed to support Indigenous businesses, offering competitive interest rates based on project risk and flexible terms tailored to the asset's lifespan.
- A minimum equity of 10% of the total project cost is required, and asset transfers may be considered as equity.
- The interest rates are competitive and vary according to the risk associated with the project.
- Loan duration can extend up to 30 years, determined by the asset's lifespan.
- Loan amount is dependent on the borrower's repayment capability, with sufficient guarantees required to cover the borrowed amount.
- Financing is available for building and land up to 70%, equipment up to 70%, and inventory up to 50%, but not for working capital.
grant_single_labels|projects
This term loan is designed to assist in the establishment, growth, or acquisition of Indigenous businesses. Eligible activities focus on enhancing financial capacity and asset acquisition for First Nations entrepreneurs.
- Start-up of a new Aboriginal business.
- Acquisition of an existing Aboriginal business.
- Expansion of an Aboriginal business.
grant_single|admissibleProjectsExample
$ 50,000
Food processing company upgrades production equipment to increase capacity and improve energy efficiency
grant_single_labels|admissibility
Eligibility for this term loan is focused on specific requirements related to the applicant's identity and business activities.
- The applicant must be a member of a specified First Nation or the Native Alliance of Quebec, including Abenaki, Algonquin, Atikamekw, Huron-Wendat, Malecite, or Micmac.
- The business must be an Aboriginal startup, acquisition, or expansion.
- The borrower must demonstrate repayment capacity and provide sufficient guarantees to cover the loan amount.
- A minimum of 10% equity of the total project cost is required, and asset transfers may be considered as equity.
- Proof of Aboriginal ancestry, such as a copy of the Indian Status card or membership in the Native Alliance of Quebec, is required.
grant_eligibility_criteria|who_can_apply
This loan program is specifically designed for Aboriginal businesses and members of the First Nations in Quebec, including Abenaki, Algonquin, Atikamekw, Huron-Wendat, Malecite, and Micmac communities. Additionally, members of the Native Alliance of Quebec are eligible to apply for this financial assistance.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include financing for start-up, acquisition, or expansion of an Aboriginal business, with loan amounts determined by the borrower's repayment capacity and guarantees offered covering the borrowed amount. Specific examples are:
- Building and land - Up to 70%
- Equipment - Up to 70%
- Inventory - Up to 50%
- Working capital - 0%
grant_single_labels|criteria
There are evaluation and selection criteria for this grant providing support to Aboriginal businesses. The criteria include:
- Minimum 10% equity required
- Competitive interest rates based on project risk
- Loan duration based on asset lifespan (up to 30 years)
- Borrower's repayment capacity determines loan amount
- Sufficient guarantees to cover borrowed amount
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Gather Required Documents
- Obtain the Application for Financing form.
- Prepare a Personal Balance Sheet form.
- Complete the Declaration regarding the accuracy of information provided and consent to gather, keep, use, and disclose personal information form.
- Prepare your résumé.
- Provide proof of Aboriginal ancestry (copy of the Indian Status card or membership with the Native Alliance of Quebec).
- Develop a Business plan, if not already prepared.
- Step 2: Assemble Business Documentation (If applicable for Existing Business)
- Compile financial statements for the last three years.
- Prepare recent interim financial statements.
- Gather governing documents of the business.
- Include ownership agreement, if applicable.
- Step 3: Contact the Grant Provider
- Reach out via phone at (418) 842-0972 or 1 800 241-0972.
- Send inquiries or submit documents to administration@socca.qc.ca.
- Visit the office at 2936, rue de la Faune Bureau 200, Wendake, G0A 4V0, if needed.
- Step 4: Submission and Follow-up
- Submit the complete application with all required documents according to instructions provided by the grant provider.
- Follow up as necessary using the provided contact details to ensure receipt and completeness of the application.
grant_single_labels|otherInfo
Here are additional relevant details for this loan program:
- Equity requirement is a minimum of 10% of the total project cost, and asset transfer can be considered as equity.
- Interest rates are competitive, based on the associated project risk, and comparable to other financial institutions.
- Loan duration can extend up to 30 years, depending on the lifespan of the asset.
- The amount of the loan is determined by the borrower’s repayment capacity and the value of guarantees offered must reasonably cover the amount borrowed.
- The initiative specifically supports the start-up, acquisition, or expansion of Aboriginal businesses.
- The organizational contact information includes phone lines available from Monday to Thursday, 8:00 am - 4:00 pm, and Friday, 8:00 am - 3:00 pm at the Native Commercial Credit Corporation's address in Wendake.
Apply to this program
Empower Your Aboriginal Business Through Strategic Loan Opportunities
This term loan is designed to support Aboriginal businesses in their start-up, acquisition, or expansion phases by providing competitive financial solutions. With a focus on sustainability, it balances competitive interest rates and flexible duration terms tailored to the needs of First Nations entrepreneurs.
Detailed Insights Into the Aboriginal Business Loan Program
The Aboriginal business loan program is a vital financial initiative aimed at empowering First Nation entrepreneurs to achieve their business objectives. This program offers term loans with competitive interest rates that align with those offered by traditional financial institutions, yet are uniquely tailored to accommodate the specific needs and risks associated with Aboriginal businesses. The interest rates and terms ensure that First Nations businesses can embark on or expand ventures while maintaining financial stability and growth potential.
One of the standout features of this loan program is its inclusivity and emphasis on self-determination within the Aboriginal business community. The program is accessible to a wide range of First Nations groups including Abenaki, Algonquin, Atikamekw, Huron-Wendat, Malecite, Micmac, as well as members of the Native Alliance of Quebec. This focus enables these communities to harness their cultural and economic potential, driving development and creating jobs within their regions.
The loan structure is designed to be adaptable, with a minimum equity requirement of 10% of the total project cost. The flexibility extends to the potential for asset transfers to be considered as equity, which can ease the initial capital requirements often faced by start-ups or expanding enterprises. This is particularly significant for Aboriginal businesses looking to leverage their existing assets to secure funding and advance their business plans.
Moreover, the loan duration is calculated based on the lifespan of the asset being financed, allowing for repayment terms that can extend up to 30 years. This long-term view supports sustainable business growth and allows businesses to plan for future developments without the pressure of short-term financial constraints.
The program places a significant emphasis on the applicant's repayment capacity, ensuring that businesses do not overextend themselves financially. Prospective borrowers must present a solid business plan or financial strategy that demonstrates their capacity to manage and repay the loan within the agreed terms. Alongside, businesses must offer guarantees that sufficiently cover the loan amount, which instills confidence in the financial partnership and mitigates potential risks.
Borrowers are required to submit a comprehensive set of documentation, including a business plan, personal and business balance sheets, and proof of Aboriginal ancestry. This documentation not only solidifies the borrower’s eligibility but also helps to craft a personalized loan agreement that aligns with their business goals and repayment capabilities.
A unique aspect of this program is its alignment with community values, offering support and guidance from professionals who have been entrenched in the First Nations business community for over a quarter-century. This experience provides a robust support network that enhances the borrowing experience with tailored advice and strategic planning assistance, making it an invaluable resource for Aboriginal entrepreneurs.
In conclusion, this term loan for Aboriginal businesses is more than just a financial product; it is a gateway to creating a prosperous and self-reliant community. It underscores a commitment to fostering economic independence and cultural preservation within First Nations, providing the tools necessary to build and expand thriving businesses. With its comprehensive support system and favorable terms, this loan program is an essential engine for growth, innovation, and lasting economic impact in Aboriginal communities throughout Canada.