TACC Conventional Loan
Highlights
This program is designed specifically for Aboriginal entrepreneurs like you. It offers two types of financing options to help your business grow. The First Citizens Fund (FCF) loan is particularly attractive because it includes a 40% forgiveness portion over the life of the loan. This means that a significant part of your loan will be forgiven, reducing your financial burden. You can borrow up to $75,000 with flexible payment terms and a fixed interest rate of 12%. This loan also offers various payment schedules to suit your cash flow needs.
Alternatively, the Conventional Loan allows you to borrow up to $250,000. While it does not include a forgiveness portion, it offers competitive interest rates starting at 8%, depending on your credit rating. Both loans require a 15% minimum cash equity contribution, ensuring you have a stake in your business's success.
By being approved for either of these loans, you gain access to much-needed capital, allowing you to make important purchases, expand your operations, or invest in new opportunities. The application process is straightforward, and the terms are designed to be flexible to meet your business needs. This program is a valuable opportunity to secure financing that is tailored to support Aboriginal entrepreneurs in the Coast Salish Territory.
Financing Details
Type of Financing:
- First Citizens Fund (FCF) Loan: This loan offers a 40% forgiveness portion over the life of the loan.
- Conventional Loan: This loan does not include a forgiveness portion and is similar to mainstream financing.
Repayment Terms and Interest Rates:
FCF Loan:
- Borrow up to $76,125.00 minus fees.
- 1.5% borrower's fee for business client care services.
- Flexible amortization terms (2-10 years).
- Monthly, Semi-Annual, and Annual payment terms available.
- 12% fixed interest rate.
- 40% of the principal amount borrowed is forgiven over the loan term.
Conventional Loan:
- Borrow up to $250,000.00.
- 1.5% borrower's fee.
- Flexible amortization terms (1-10 years).
- Monthly, Semi-Annual, and Annual payment terms available.
- Sliding scale interest rate, starting at 8%, based on your credit rating.
Eligible Expenses:
- Business-related expenses that align with the terms of the loan.
- Must be at least 51% Aboriginal owned/operated.
- 15% minimum cash equity contribution required.
Use of Funds:
- Funds cannot be used for non-business-related expenses.
- Specific allocations and restrictions may apply as per the loan agreement.
Fees:
- FCF Loan: 1.5% borrower's fee.
- Conventional Loan: 1.5% borrower's fee.
Qualifications
- Must be at least 51% Aboriginal owned/operated.
- Must be an Aboriginal Entrepreneur (Status, Métis, Inuit, and Non-Status Indians).
- Must reside in the Coast Salish Territory.
Must provide a minimum cash equity contribution of 15%.
Disqualifications:
- Businesses not owned or operated by Aboriginal Entrepreneurs.
- Businesses located outside the Coast Salish Territory.
- Businesses unable to provide the minimum cash equity contribution of 15%.
Description
The First Citizens Fund (FCF) loan offers your business a unique opportunity. You can borrow up to $75,000 with a 40% forgiveness portion over the life of the loan. This means that 40% of the principal amount you borrow will be forgiven, reducing your repayment burden significantly. The loan comes with flexible amortization terms ranging from 2 to 10 years, and you can choose from monthly, semi-annual, or annual payment terms. The interest rate is fixed at 12%, and there is a 1.5% borrower’s fee for business client care services.
If you need a larger amount, the TACC Conventional Loan lets you borrow up to $250,000. While this loan does not include a forgiveness portion, it offers flexible amortization terms from 1 to 10 years. You can select from various payment schedules—monthly, semi-annual, or annual. The interest rate is on a sliding scale starting at 8%, based on your credit rating, and there is also a 1.5% borrower’s fee.
Both loans require a 15% minimum cash equity contribution from your side. These financing options are designed to help your business grow and succeed, providing you with the necessary funds and flexible repayment terms tailored to your needs.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. You will need:
- Business Plan
- Financial Statements (e.g., income statement, balance sheet)
- Proof of Aboriginal ownership (at least 51%)
- Personal and business credit reports
- Details of intended use of funds
- Proof of 15% minimum cash equity contribution
Review Loan Options: Decide whether you want to apply for the First Citizens Fund (FCF) Loan or the TACC Conventional Loan. Consider the terms, interest rates, and repayment options for each.
Complete the Application Form: Fill out the loan application form provided by Tale’awtxw Aboriginal Capital Corporation (TACC). Ensure all sections are completed accurately.
Submit the Application: Submit your completed application form along with all required documentation to TACC. You can do this via mail, email, or in person at their office.
Attend an Interview: Be prepared to attend an interview with a TACC representative. This may involve discussing your business plan, financials, and how you plan to use the loan funds.
Review and Sign Loan Agreement: If your application is approved, carefully review the loan agreement terms. Sign the agreement once you are satisfied with the terms and conditions.
Receive Loan Funds: After signing the loan agreement, the funds will be disbursed according to the agreed terms. You can then use the funds for your business needs as outlined in your application.
Make Repayments: Follow the agreed repayment schedule. Ensure timely payments to benefit from the loan terms, including any forgiveness portions if applicable.