TACC First Citizens Fund (FCF) Loan
BC, Canada
Loans with partial forgiveness for Indigenous entrepreneurs in Coast Salish
grant_single_labels|summary
grant_single|eligibleFinancing
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grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
grant_single|financingType
Loans and Capital investments
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- grant_single|allIndustries
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- Tale'awtxw Aboriginal Capital Corporation
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grant_card_status|open
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Get a loan of up to $75,000, with 40% forgiveness of the principal amount, to start or grow a business.
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This grant offers unique financing modalities for Aboriginal entrepreneurs, featuring distinct forgiveness benefits for eligible loans. The structure is designed to support business growth while providing financial relief through loan forgiveness.
- The First Citizens Fund (FCF) Loan includes a 40% forgiveness portion over the life of the loan.
- Businesses can borrow up to $76,125.00, minus fees.
- A 1.5% borrowers fee applies for business client care services.
- Flexible amortization terms ranging from 2 to 10 years are available.
- Payment terms can be chosen as monthly, semi-annual, or annual.
- The FCF loan has a fixed interest rate of 12%.
- A mandatory 15% minimum cash equity contribution is required from the borrower.
- The 40% forgiveness is structured as 10% deductions from the principal, applied four times throughout the loan term, conditioned by the FCF Agreement terms.
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The TACC First Citizens Fund (FCF) Loan supports the entrepreneurial ventures of Aboriginal entrepreneurs, helping them establish and grow their businesses. Given the grant's focus, projects eligible for this loan revolve around business creation and expansion.
- New business ventures initiated by Aboriginal entrepreneurs.
- Expansion projects for existing Aboriginal-owned businesses.
- Investments in business infrastructure and operations improvements.
- Activities that enhance the sustainability and economic viability of Aboriginal businesses.
grant_single|admissibleProjectsExample
$ 75,000
Opening a new café that employs marginalized youth
$ 75,000
Launching a sustainable clothing line with locally sourced materials
$ 75,000
Developing a mobile app to improve mental health among teens
$ 75,000
Launching a tech startup focused on AI-driven healthcare solutions
$ 75,000
Expanding a local art gallery with new exhibitions and workshops
$ 75,000
Establishing a new community garden's Scarborough area
grant_single_labels|admissibility
Eligibility for applying for financing with TACC is determined based on the following criteria related to the applicant's business ownership and financial contributions.
- The business must be at least 51% Aboriginal owned/operated.
- The applicant must meet the 15% minimum cash equity contribution requirement.
grant_eligibility_criteria|who_can_apply
Aboriginal Entrepreneurs including Status, Métis, Inuit, and Non-Status Indians residing in the Coast Salish Territory.
grant_eligibility_criteria|zone
This grant is specifically available to Aboriginal Entrepreneurs residing in a particular territory. The eligible geographical area is defined by the cultural and historical boundaries of the Coast Salish Territory.
- Coast Salish Territory
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There are evaluation and selection criteria for this grant.
- Businesses must be at least 51% Aboriginal owned/ operated.
- 15% minimum cash equity contribution required.
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Here are the steps to submit an application for financing through TACC:
- Step 1: Initial Inquiry
- Contact TACC to express your interest in applying for a loan.
- Ensure you meet the minimum eligibility requirements to apply.
- Step 2: Prepare Documentation
- Gather documentation proving Aboriginal ownership (minimum 51%).
- Prepare financial statements and business plans.
- Compile records to demonstrate the 15% cash equity contribution.
- Step 3: Complete Application
- Fill out the loan application form provided by TACC.
- Review the terms and conditions of the loan program carefully.
- Step 4: Submit Application
- Submit the completed application form along with all supporting documentation to TACC.
- Ensure all required signatures are affixed before submission.
- Step 5: Follow-up
- Wait for confirmation from TACC regarding the receipt of your application.
- Respond promptly if additional information is requested.
- Step 6: Decision Waiting Period
- TACC will review your application and conduct due diligence.
- Be prepared to provide additional information or clarification if required during this period.
- Step 7: Receive Decision
- Upon approval, receive details of your loan agreement including repayment terms and forgiveness options if applicable.
- Review the loan offer carefully before acceptance.
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Here are additional relevant details for these financing options:
- The FCF Loan offers a 40% forgiveness on the principal, which can significantly reduce the overall debt.
- The interest rates differ for each loan type, with FCF at a fixed 12% and Conventional Loan starting at 8% based on credit.
- Both loan options require a 15% minimum cash equity contribution from the applicant.
- For the FCF Loan, the forgivable portion is applied at four distinct intervals throughout the loan term based on specific conditions.
- Borrowers are subject to a 1.5% fee which covers business client care services provided by TACC.
- It's important to understand and agree to the terms and conditions outlined in the FCF Agreement to receive forgiveness benefits.
Apply to this program
Empowering Aboriginal Entrepreneurs in Coast Salish Territory
The TACC provides crucial financial support to Aboriginal Entrepreneurs residing in the Coast Salish Territory, offering unique financing options such as the First Citizens Fund Loan and the Conventional Loan. These programs are structured to ease financial accessibility while promoting sustainable business development within Aboriginal communities.
Detailed Insights on TACC's Financing Programs
The financing options provided by TACC are specifically tailored to meet the diverse needs of Aboriginal Entrepreneurs within the Coast Salish Territory. Recognizing the challenges that these entrepreneurs face in accessing finance, TACC offers two distinct loan products designed to foster business growth and economic self-reliance: the First Citizens Fund (FCF) loan and the Conventional Loan.
The First Citizens Fund loan is a particularly attractive option for qualifying Aboriginal businesses, as it includes a 40% forgiveness portion, providing substantial financial relief over the life of the loan. This means that for every loan disbursement, entrepreneurs benefit from a reduction in the principal loan amount, subject to the terms of the FCF Agreement. Additionally, this loan program allows entrepreneurs to borrow up to $76,125 minus applicable fees, with a borrower-friendly fee structure where a minimal 1.5% borrower fee is charged for business client care services. The FCF loan further eases the burden of repayment with flexible amortization terms ranging from 2 to 10 years, alongside various payment options such as monthly, semi-annual, and annual payments, thereby accommodating different cash flow scenarios that businesses may encounter.
In contrast, the TACC Conventional Loan offers an option that is akin to mainstream financing without a forgiveness component. This loan is designed for those who may not qualify for the FCF or who seek larger capital injections up to $250,000. Like the FCF loan, the Conventional Loan also incorporates a borrower-friendly 1.5% fee with flexible repayment schedules of 1 to 10 years and a sliding scale interest rate starting at 8%, which is adaptable based on the borrower’s credit rating. This provides a competitive financial option for entrepreneurs poised to expand their ventures significantly.
Both loan offerings require a 15% minimum cash equity contribution, emphasizing the importance of stakeholders' active participation and investment in their ventures. Moreover, businesses must demonstrate a minimum 51% Aboriginal ownership or operation to qualify, ensuring that the benefits of these initiatives are accurately targeted towards Aboriginal communities.
These financial products are not only about capital access but are uniquely structured to build long-term financial health and self-sufficiency within Aboriginal businesses. By offering reduced financial burdens through the partial loan forgiveness component in the FCF and the competitive and adaptable terms of the Conventional Loan, TACC is helping to create an inclusive economic environment where Aboriginal entrepreneurs can thrive.
TACC’s focus on supporting Aboriginal businesses showcases a vital commitment to fostering entrepreneurship that respects and integrates cultural dimensions, providing tailored financial tools that are both responsive and responsible. Such initiatives are crucial to advancing the economic development of Aboriginal communities by enhancing the capacity of entrepreneurs to scale their businesses, innovate, and contribute positively to their communities.
