SOCCA — Term loan for Indigenous businesses
Last Update: March 27, 2025
QC, Canada
Term loan for Indigenous-led business projects
SOCCA — Term loan for Indigenous businesses at a glance
Eligible Funding
- Up to 70% of project cost
Timeline
- Continuous Intakes
Financing Type
Loans and Capital investments
Eligible Industries
- Arts, entertainment and recreation
- Accommodation and food services
- Other services (except public administration)
- Public administration
Grant Providers
- SOCCA
Status
Open
Overview of the SOCCA — Term loan for Indigenous businesses program
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.
Financing 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.
Eligible projects & activities
This grant facilitates funding for Indigenous businesses seeking to improve or develop their commercial activities in various sectors. Eligible projects focus on establishing new businesses or expanding existing structures.
- Starting a new Indigenous business.
- Acquisition of existing businesses by Indigenous entrepreneurs.
- Expansion of activities of an existing Indigenous business.
- Investments in buildings and land.
- Purchase of equipment necessary for the business.
- Renewal or increase of inventory.
Examples of admissible projects:
$ 50,000
Food processing company upgrades production equipment to increase capacity and improve energy efficiency
Eligibility criteria of the SOCCA — Term loan for Indigenous businesses program
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.
Who is eligible?
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.
Eligible expenses
This grant is intended to facilitate the financing of Indigenous initiatives in entrepreneurial development. Eligible activities particularly focus on the startup, acquisition, or expansion of Indigenous businesses.
- Startup of an Indigenous business.
- Acquisition of an existing business by members of First Nations.
- Expansion of existing Indigenous businesses.
Eligibility criteria of the SOCCA — Term loan for Indigenous businesses program
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
How to apply to the SOCCA — Term loan for Indigenous businesses program
1
Preparation of documents
- Complete the "Funding Application" form.
- Fill out the "Personal Statement" form.
- Draft and sign the declaration regarding the accuracy of the information provided and the consent concerning personal information.
- Provide an up-to-date resume.
- Attach proof of Indigenous ancestry (for example, a copy of the Indian status card).
- Prepare a business plan if available.
2
Collection of company documents (if available)
- Gather the financial statements for the last 3 years.
- Include the recent interim financial statements.
- Attach the company's formation documents.
- Present the agreement between owners, if applicable.
3
Sending the request
Send all required documents by mail or digitally to the following address: administration@socca.qc.ca.
Additional information
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.