Indigenous Cannabis Business Fund — Community Planning & Engagement
Highlights
This program is designed specifically for Indigenous businesses and entrepreneurs in British Columbia who want to enter or expand in the regulated cannabis sector. Why should you apply? This program offers non-repayable funding contributions that can significantly reduce your financial burden. You can receive up to $250,000 per project, which can be used for business planning, design, licensing, training, and capital costs.
What’s in it for you?
- Up to 75% of eligible costs for business planning and advisory services.
- Up to 75% for staff training.
- Up to 40% of eligible costs for business capitalization, including start-up, expansion, and equipment purchase.
Being approved for this program will help you navigate the regulatory processes, create employment opportunities, and support economic diversification. The application process is straightforward, starting with an Expression of Interest form, and you will receive guidance throughout. This is a unique opportunity to grow your business with substantial financial support and expert advice.
Financing Details
Type of Financing: Non-repayable Grant
Repayment Terms and Interest Rates:
- No repayment required.
- No interest rates apply.
Eligible Expenses:
- Business planning costs (up to 75%).
- Business advisory services and staff training (up to 75%).
- Business capitalization, including start-up and expansion costs (up to 40%).
- Feasibility studies, licensing, permitting, and business design costs.
- Construction, retrofits, and equipment purchase related to business start-up or expansion.
Ineligible Expenses:
- Personal expenses.
- Non-business-related activities.
- Any costs not directly associated with the cannabis business project.
Fees:
- No application fees.
- No processing fees.
Qualifications
- Must be a B.C. First Nation government, business, or economic development corporation.
- Must be a B.C. Tribal Council.
- Must be a B.C. Indigenous Corporation, partnership, association, co-operative, or institution.
- Must be a B.C. Indigenous (First Nation, Métis, Inuit) entrepreneur or business.
- Must have a minimum of 51% Indigenous ownership of the underlying business.
- Indigenous ownership and control must be in proportion to the amount of equity invested in the business.
- Must be willing and able to share in the costs of the project.
- On-Reserve projects must provide reasonable evidence of community engagement.
- On-Reserve projects must provide evidence of First Nation government support through a Band Council Resolution or equivalent.
- On-Reserve projects must cease operations of unregulated businesses prior to disbursement of ICBF Grant.
- On-Reserve projects seeking both federal (production) and provincial (retail) licenses must have or plan to enter into a section 119 government-to-government agreement with the Province.
- Must apply for ICBF Grants for certain project types (e.g., acquisitions, capital costs, infrastructure) in conjunction with commercial loan financing, alternative financing, or an equivalent amount of cash equity.
Must have financial capacity to provide between 25% to 60% of the project costs through cash equity and/or loan financing, depending on the project type.
Disqualifications:
- Businesses not meeting the minimum 51% Indigenous ownership requirement.
- Businesses unable to share in the costs of the project.
- On-Reserve projects without evidence of community engagement or First Nation government support.
- Unregulated businesses that do not cease operations prior to disbursement of ICBF Grant.
- Projects without commercial loan financing, alternative financing, or equivalent cash equity for certain project types.
Description
This program offers non-repayable funding up to $250,000 for Indigenous businesses and entrepreneurs in British Columbia. The funds can be used for various activities related to the cannabis industry, including business planning, design, licensing, and capital costs.
You can use the money for:
- Establishing new cannabis businesses
- Expanding existing regulated cannabis businesses
- Transitioning unregulated cannabis businesses into the regulated market
Funding covers:
- Up to 75% of eligible costs for business planning and advisory services
- Up to 75% for staff training
- Up to 40% of eligible costs for business capitalization, such as construction, retrofits, and equipment purchase
This program aims to support Indigenous business development, create jobs, and promote economic growth in the regulated cannabis sector. It also helps you navigate the regulatory processes and balance community health and safety with business opportunities.
Program Steps
Complete the Expression of Interest (EOI) Form:
- Visit the program's website and fill out the EOI form.
- Provide your contact information, details about your business, and a brief description of your cannabis project.
- Indicate your interest in the funding streams (Community Engagement or Business Planning, Design, & Capital).
Prepare Required Documentation:
- Gather the following documents:
- Business plan
- Financial statements
- Proof of Indigenous ownership (minimum 51%)
- Evidence of community engagement (for on-reserve projects)
- Band Council Resolution or equivalent (for on-reserve projects)
- Licensing status (e.g., Section 119 Agreement, Canada Cannabis License, Provincial Cannabis Retail Licence)
- Financing details (e.g., commercial loan financing, cash equity)
- Gather the following documents:
Submit EOI Form:
- Submit the completed EOI form through the program's website.
- Wait for a response, which typically takes 5 to 7 business days.
Applicant and Project Screening:
- Once your EOI is reviewed, you will be referred to an Aboriginal Financial Institution (AFI) in B.C.
- The AFI will conduct standard screening and due diligence to assess the viability of your project.
Application Approval Decisions:
- The AFI will evaluate your application based on set criteria.
- A multi-stakeholder Steering Committee will provide guidance and support for approval and funding allocation decisions.
Receive Approval and Funding:
- If approved, you will receive communication from New Relationship Trust or the assigned AFI.
- Discuss final terms, funding amount, and any additional requirements.
Implement Your Project:
- Use the funds to support your cannabis project, following the approved business plan and budget.
- Ensure compliance with all regulatory and reporting requirements.
Ongoing Support and Reporting:
- Maintain regular communication with the AFI and program administrators.
- Submit periodic reports as required to demonstrate project progress and financial accountability.