Transcript Community Futures Treaty Seven

Community Futures
Treaty Seven
Community Futures Treaty Seven
5th Annual Disability Employment Symposium
“Keeping the Momentum, Moving Forward”
May 17, 2012
Entrepreneurship – Shawna Morning Bull
PROGRAMS
 Western Economic Diversification (WED)
• General Loan Fund
• Disability (Entrepreneurship)
 Aboriginal Business Development Program
• Business Support Officer
 Government of Alberta – Human Services
• Business Support Initiative
• Entrepreneurship Training
• Third Party Consulting
 First Nations Entrepreneurial Youth
Symposium
 Community Economic Development
GENERAL BUSINESS LOANS CRITERIA
 Business
loans to Treaty Seven Nation Members
 51% percent interest in a business on or off
reserve, excluding agriculture loans.
 Loans up to $25,000 for asset purchase, equity
and joint venture participation.
 Loans must have community support (Band
Council Resolution).
Cont...
Purpose of loans primarily for business
creation and expansion.
Emphasis on loans that would not
otherwise qualify at a conventional
financial institution.
All loans require equity 10 %
Only viable business opportunities
approved.
Cont...
Emphasis on loans that will generate long
term full time employment for on or off
reserve residents or Treaty Seven
members.
Emphasis on loans that can assist clients
to leverage outside funding.
Equity financing
Life insured loans
Business Support Services
Reviewing business plans
 Identify potential opportunities
 Business counselling
 Entrepreneurial training
 Business financial control assistance
 Networking with other lenders and/or
Aboriginal Financial Institutions
 Business Consultant Services
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First Nations Entrepreneurial Youth
Camp
August 26-31,2012
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Tailored to meet the needs of youth entrepreneurs
between the ages of 18 – 35 years.
One week intensive training on the fundamentals of
completing a Business Plan consisting of: Guest
Speakers, Accounting, Marketing, Small Business Law, a
Bankers Panel and Risk-Taking Activities
Participants leave with a completed Business Plan and
knowledge of Small Business Ownership and
Operations
Community Economic
Development (CED)
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CED is action taken locally by a community to provide
economic opportunities and improve social conditions in a
sustainable way.
CED initiatives aim to improve the fortune of those who are
disadvantaged. It is the aspect of “localizing economics,”
CED is a community-centered process that blends social and
economic development to foster the economic, social, and
cultural well-being of communities.
CFT7 has been active in the Treaty Seven communities as
well as in the urban centers promoting CFT7 programs;
meeting with the Economic Development Officers of Treaty
Seven on a regular basis; and enhancing internal partnerships
with both programs at CFT7, Business Development and
Labour Market Development.
CFT7 is active in CED projects.
Entrepreneurs and Economic
Development
Entrepreneurs are vital to the economic
health of any community or nation.
 They create the opportunities for jobs
and retaining money in the community or
nation,
 Reducing leakage and encouraging
external money to come in.
 An economic model for community
development begins through
entrepreneurial activity.
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Entrepreneurship
Entrepreneurs perceive an opportunity and
develop a business to fill the opportunity.
 Large scale projects create opportunities to tap
into the customer base of the initiative.
 Development of a plan to fill these
opportunities is the starting point for an
entrepreneur.
 Essentially what can work, you have to try.
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What is Entrepreneurship
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Wikipedia notes Entrepreneurship as:
“Entrepreneurship is the practice of starting
new organizations, particularly new businesses
generally in response to identified opportunities.
Entrepreneurship is often a difficult undertaking,
as a vast majority of new businesses fail.
Why do Small Business’s Fail?
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Growing too fast
Failing to track your finances
Overspending
Lack of reserve capital
Poor choice of location
Poor execution
An inadequate business plan
Failing to change with the times
Ineffective marketing
Underestimating the competition
What is Developmental Lending?
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Financing is an integral part of any business or social
enterprise, whether it is for start-up costs or expansion.
Loans to new, existing or expanding businesses that
operate within the starting phase.
Developmental loans are the different types of
loans that cater to the specific needs of small
businesses. (Eg. Term loan, LOC, or Equity)
Developmental loans are have the flexibility to provide
financing for businesses that are unable to secure
funding under reasonable terms and conditions from
traditional lenders. In some cases, lenders may be
prepared to consider a position of higher risk than
other conventional lenders.
How do Lenders deliver on their
promise to assist you?.....
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To understand you and your business by
finding out:
- Who are you?
- Who are your business partners?
- What are your successes and challenges?
- Where is your business at right now?
What the Lender will be looking for?
Proof of experience, skills and self
confidence to successfully carry out your
project.
 Your personal credit history – past
performances can affect perception about
how you will perform in the future.
 Your business plan must be clear,
structured and short, but it must cover all
elements of your business idea.
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What the Lender will be looking for?
For new and existing companies:
 Forecast for next 2 years
 A cash flow analysis that describes your forecasts:
shows the seasonal fluctuations in your business
and prescribes the need for capital
 Amount of personal investment
(money/equipment)
 Risk sharing strategy: with a third party, who is
taking all the risk.
Typical Loan Criteria
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The investment fund is not a grant or forgivable loan program.
Loans are available to businesses operating in the lending area:
Demonstrates some job creation/retention for lending area
residents.
Is not involved in the commercial exploitation of sex or religion or
involved in political or illegal activities.
Establishes a reasonable expectation of economic viability.
Demonstrates the ability to repay funds advanced by the
corporation.
Includes other funding partners such as:
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The shareholders of an incorporated business,
The principals and/or partners of an unincorporated business,
Private investors, including family members,
Government agencies,
Other approved funding partners.
5 C’s of Lending
Character/Credit
 Capital
 Capacity
 Conditions
 Collateral
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Questions on Lending or
Services?
Thank You
Suite 6011 1A St. SW
Calgary, AB
Phone: 403.251.9242
Fax: 403.251.9750
www.t7edc.com