First Citizens Fund — Business Loan Program
Highlights
This program is designed specifically for Indigenous entrepreneurs in British Columbia. It offers a unique opportunity to secure financing that can help your business grow and thrive. By applying, you can access funds that are tailored to meet the needs of your business.
What You Get
- Flexible financing options through the Aboriginal Business Loan Program.
- Support from trusted lenders like All Nations Trust Company and other Aboriginal Capital Corporations.
- Government-backed loans, ensuring stability and reliability.
Benefits for Your Business
- Use the funds for various purposes: operating expenses, new equipment, restorations, and more.
- Flexible repayment terms, giving you up to 15 years to repay the loan.
- Additional support and resources from experienced lenders who understand your unique needs.
Applying is straightforward, and the program is designed to be accessible. By securing this financing, you can make significant investments in your business, ensuring long-term success and sustainability.
Financing Details
Type of Financing:
- Loan: This program offers business loans to Indigenous entrepreneurs in British Columbia.
Repayment Terms and Interest Rates:
- Repayment Term: The loan must be repaid within a period of up to 10 years.
- Interest Rates: The interest rate is competitive and fixed at 5% per annum.
Eligible Expenses:
- Business Start-Up Costs: Funds can be used for initial expenses such as equipment, inventory, and leasehold improvements.
- Expansion Costs: Eligible for business growth activities including purchasing additional equipment, expanding facilities, and increasing inventory.
- Working Capital: Can be used for day-to-day operational expenses such as payroll, utilities, and marketing.
Ineligible Expenses:
- Personal Expenses: Funds cannot be used for personal expenses or non-business-related activities.
- Debt Repayment: The loan cannot be used to pay off existing debts or loans.
Fees:
- Application Fee: A one-time application fee of $150 is required.
- Administration Fee: An annual administration fee of 1% of the loan amount is applicable.
Qualifications
- Must be an Indigenous entrepreneur.
Business must be located in British Columbia.
Disqualifications:
- Non-Indigenous entrepreneurs.
- Businesses located outside of British Columbia.
Description
This program offers your business a chance to borrow up to $1,000,000. You can use this money to buy equipment or improve your workspace.
You can use the funds for:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For other costs like software or operational expenses, you can receive up to $150,000.
The loan is backed by the federal government, which guarantees 85% of it. This provides a strong safety net for your business.
Flexible repayment options are available. You can choose a variable interest rate, a fixed rate, or a combination of both.
You have up to 15 years to repay the loan, regardless of what you spend it on. This flexibility allows you to manage your finances effectively.
Program Steps
Contact a Lender: Reach out to one of the approved lenders to start your application process. You can choose from:
- All Nations Trust Company (Kamloops, BC)
- Nuu-chah-nulth Economic Development Corporation (Port Alberni, BC)
- Tale'awtxw Aboriginal Capital Corporation (West Vancouver, BC)
- Tribal Resources Investment Corporation (Prince Rupert, BC)
Gather Required Documentation: Prepare the necessary documents to support your application. These typically include:
- Business plan
- Financial statements (balance sheet, income statement, cash flow statement)
- Personal identification
- Proof of business ownership
- Details of intended use of funds (e.g., quotes for equipment or renovation costs)
Complete the Application Form: Fill out the application form provided by the lender. Ensure all sections are completed accurately and thoroughly.
Submit Your Application: Submit the completed application form along with the required documentation to your chosen lender. This can often be done via mail, fax, or email.
Review and Follow-Up: The lender will review your application. Be prepared to provide additional information or clarification if requested. Stay in contact with the lender to track the progress of your application.
Approval and Loan Agreement: Once your application is approved, review the loan terms and conditions. Discuss any questions or concerns with the lender before signing the loan agreement.
Receive Funds: After signing the loan agreement, the funds will be disbursed according to the agreed terms. Use the funds as outlined in your application to support and grow your business.