TACC Conventional Loan
BC, Canada
Conventional business loans for Indigenous entrepreneurs in Coast Salish
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
- grant_single|grantStatusClosed
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Tale'awtxw Aboriginal Capital Corporation
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grant_card_status|open
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Get up to $250,000 with a sliding scale interest rate and flexible amortization if you want to start or grow a business in the Coast Salish Territory.
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This grant is specifically available for Aboriginal entrepreneurs residing within the Coast Salish Territory. The funding targets businesses operating in this defined geographical area.
- Aboriginal entrepreneurs residing in the Coast Salish Territory.
grant_single|admissibleProjectsExample
$80,000
Set up a mobile tech repair service to serve the community
$120,000
Create a digital platform for Indigenous artists to sell their work online from Burnaby
$140,000
Establish a community gardening project to enhance local food security
$100,000
Launch a craft brewery focused on local ingredients and sustainable practices
$180,000
Develop an eco-friendly packaging line for a local food production company
$75,000
Expand a community kitchen project to offer cooking classes and food distribution
grant_single_labels|admissibility
Eligibility for this financing requires specific conditions to be met by the applicant's business and ownership structure.
- The business must be at least 51% Aboriginal owned and operated.
- The applicant must be an Aboriginal Entrepreneur, including Status, Métis, Inuit and Non-Status Indians, residing in the Coast Salish Territory.
- A minimum cash equity contribution of 15% is required.
grant_eligibility_criteria|who_can_apply
This grant is available to Aboriginal Entrepreneurs residing in the Coast Salish Territory who are either Status, Métis, Inuit, or Non-Status Indians. The businesses must be at least 51% Aboriginal owned or operated to qualify.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Determine Eligibility
- Review the types of loans available: FCF Loan and Conventional Loan.
- Assess the minimum business ownership and cash equity contribution requirements.
- Step 2: Gather Required Documentation
- Prepare documents related to business ownership and operation details.
- Compile financial statements and a business plan to support your loan application.
- Step 3: Complete Application Form
- Fill out the loan application form provided by TACC.
- Ensure all information is complete and accurate before submission.
- Step 4: Submit Application
- Send the completed application form along with all required documents to TACC.
- Follow any specific instructions for submission provided by TACC.
- Step 5: Await Confirmation
- Wait for confirmation of receipt from TACC, including any reference number.
- Keep confirmation details for future reference.
- Step 6: Respond to Follow-up Requests
- Check for any additional requests or inquiries from TACC regarding your application.
- Provide any further information or clarification as needed.
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Here are additional relevant details for this grant:
- The loan forgiveness portion is deducted in four installments of 10% each, which is based on specific terms and conditions outlined in the FCF Agreement.
- For FCF loans, flexibility in payment terms includes choices of monthly, semi-annual, or annual payments, which can assist with cash flow management.
- The structured forgiveness can significantly reduce the effective interest expense over the loan term on the FCF Loan.
- Business client care services come with a fee of 1.5% for both FCF and Conventional loans, highlighting a need to account for these additional costs in budget planning.
- The sliding scale interest rate of the Conventional Loan starting at 8% varies depending on the applicant's credit rating, indicating the importance of maintaining a good credit score.
Apply to this program
Empowering Aboriginal Entrepreneurs with Financial Support
The TACC offers specialized financial services to Aboriginal entrepreneurs in the Coast Salish Territory, including flexible loan options designed to support business growth and sustainability. These financial tools aim to mitigate the challenges of accessing funding and enhance economic opportunities for Status, Métis, Inuit, and Non-Status Indian business owners.
In-Depth Analysis of TACC's Loan Offerings for Aboriginal Entrepreneurs
The TACC financing initiative significantly elevates opportunities for Aboriginal entrepreneurs operating within the Coast Salish Territory by providing tailored loan options with unique benefits. The First Citizens Fund (FCF) Loan is particularly appealing due to its significant forgiveness feature, which offsets a substantial portion of the principal, easing the financial burden on business owners. This type of loan enables entrepreneurs to borrow up to $76,125 while benefiting from a 40% forgiveness over its term — making it an attractive funding solution for those aiming to innovate or expand their business operations.
This financing mechanism is characterized by adaptable amortization terms, which range from two to ten years, providing entrepreneurs with the flexibility to manage their financial commitments according to their business cycles. The loan offers varied payment intervals, including monthly, semi-annual, and annual payments, catering to different cash flow scenarios experienced by businesses. Furthermore, the fixed interest rate of 12% ensures predictability in financial planning, a necessity for strategic growth and operational budgeting.
For those entrepreneurs seeking more substantial capital, the TACC also provides a Conventional Loan option with a borrowing potential of up to $250,000. Although it lacks a forgiveness feature, it resembles mainstream financial products, presenting a scalable solution for businesses with robust plans and creditworthiness. The sliding scale interest rate, starting at 8%, offers competitive pricing, and ties directly to the entrepreneur's credit standing, incentivizing financial responsibility and stability.
A critical component across both loan products is the requirement for a 15% cash equity contribution. This stipulation ensures that the entrepreneurs have a vested interest in their ventures, aligning their success with sound financial practices and risk assessment. The borrowers' fee set at 1.5% across both loan types facilitates access to business client care services, promoting informed decision-making and enhancing entrepreneurial skill sets through resourceful advisory support.
By offering these comprehensive loan options, TACC not only provides much-needed financial resources to Aboriginal entrepreneurs but also empowers them to build and sustain competitive businesses. These loans are not just mere financial products but are strategic tools designed to nurture growth, resilience, and self-sufficiency within Aboriginal communities, fostering a thriving economic environment in the Coast Salish Territory.
This initiative reflects TACC’s commitment to bridging economic gaps and presenting viable opportunities for Aboriginal entrepreneurs, recognizing their vital role in regional development and cultural preservation. By supporting ownership and operational control at a minimum threshold of 51%, TACC underscores the importance of genuine Aboriginal engagement and empowerment in business endeavors. Ultimately, this strategic financial support radicalizes the narrative surrounding indigenous entrepreneurship, marking a significant step towards economic inclusivity and self-determination.
