TACC First Citizens Fund (FCF) Loan
At a glance
- Max. $75,000
- 85% of project cost
- Open Date : November 14, 2019
- All industries
- Tale'awtxw Aboriginal Capital Corporation
Overview
Eligibility criteria
The eligibility criteria for the FCF Loan and Grant are as follows: 1. Businesses must be at least 51% Aboriginal owned and operated. 2. The business must be located in the Coast Salish Territory. 3. A 15% minimum cash equity contribution is required. 4. For the FCF Loan, forgiveness of 40% of the principle amount borrowed is subject to specific terms and conditions. 5. The Conventional Loan does not include a forgiveness portion but follows mainstream financing guidelines. 6. Applicants must meet the financing requirements outlined for each loan option.
Who is eligible
Eligible companies for this grant must be at least 51% Aboriginal owned/operated and must meet the following criteria:
- Businesses must be at least 51% Aboriginal owned/operated
Evaluation & selection criteria
There are evaluation and selection criteria for this grant.
- Businesses must be at least 51% Aboriginal owned/ operated.
- 15% minimum cash equity contribution required.
How to apply
To apply for the TACC grant for Aboriginal entrepreneurs, follow these steps: 1. Determine which loan option (FCF Loan or Conventional Loan) best suits your needs. 2. Ensure your business meets the eligibility criteria, such as being at least 51% Aboriginal owned/operated. 3. Prepare the required documents, including financial statements, business plan, and proof of equity contribution. 4. Contact TACC to request an application form and submit all necessary documentation. 5. Await approval and funding decision from TACC. These steps outline the basic process for applying for the TACC grant.
Additional information
- Applicants should ensure that their business is at least 51% Aboriginal owned/operated to be eligible for the FCF Loan. - A 15% minimum cash equity contribution is required for both the FCF Loan and the Conventional Loan. - The FCF Loan offers a forgiveness portion of 40% of the principal amount borrowed over the life of the loan. - The forgiveness portion of 10% is deducted from the principle of the FCF Loan four times throughout the term of the loan, subject to the terms and conditions of the FCF Agreement.
First Citizens Fund (FCF) Loan
The First Citizens Fund (FCF) loan offered by TACC provides a 40% forgiveness portion over the life of the loan, with a maximum borrowing limit of $75,000. The loan terms include flexible amortization options, a fixed 12% interest rate, and a 15% minimum cash equity contribution requirement for businesses that are at least 51% Aboriginal owned.
Exploring the First Citizens Fund (FCF) Loan
As part of its commitment to supporting Aboriginal Entrepreneurs, TACC offers the First Citizens Fund (FCF) loan, designed to provide financial assistance with a forgiveness component. This loan allows borrowers to access up to $76,125 with flexible repayment terms ranging from 2 to 10 years. The forgiveness feature, amounting to 40% of the principal borrowed over the loan's lifespan, aims to ease the financial burden on eligible businesses.
Under the FCF loan program, borrowers are subject to a 1.5% fee for business client care services, and businesses must meet the requirement of being at least 51% Aboriginal owned and operated. A 15% minimum cash equity contribution is necessary to secure the loan. The forgiveness portion, totaling 40% of the principal amount borrowed, is incrementally applied throughout the loan term, providing a financial benefit to eligible borrowers. The fixed 12% interest rate ensures predictability in repayment obligations.
Moreover, the FCF loan offers various payment frequency options, allowing borrowers to choose between monthly, semi-annual, and annual payment schedules. These flexible payment terms cater to the diverse needs of Aboriginal entrepreneurs and contribute to the sustainability of their businesses. By availing of the FCF loan, entrepreneurs gain access to crucial funding while benefiting from the forgiveness element that lightens the overall debt burden and encourages business growth and success.
In summary, the First Citizens Fund (FCF) loan from TACC presents a valuable opportunity for Aboriginal entrepreneurs to secure financing with favorable terms. Through a combination of forgiveness features, flexible amortization, and competitive interest rates, this loan program aims to empower businesses to thrive and contribute to the economic development of Aboriginal communities in the Coast Salish Territory.
