Transcript Non-refundable contribution (grant)

Nature, Trade and Industry Show
Rouyn-Noranda, March 23 and 24,2011
Welcome to the Conference
“Possible sources
of financing for
private enterprise”
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Presentation of the Speaker
Laurent Odjick, External Development Officer
• Laurent Odjick is a member of the Algonquin Nation
from the community of Kitigan Zibi
• He holds a Bachelor of Business Administration and
joined the ranks of the SOCCA team in May 2005 in
the capacity of External Development Officer.
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Our Profile
• SOCCA is a non-profit
corporation firmly established
within the First Nations of
Quebec since 1992.
• SOCCA offers financial
products and services as well
as coaching for the start-up,
acquisition and expansion of
Aboriginal businesses.
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Our Clientele
• Serving First Nations
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Abenaki
Algonquin
Atikamekw
Huron-Wendat
Micmac
Cree (ABDP only)
And the members of the Native
Alliance of Quebec
Our Products and Services
• We offer
1. Term loans
2. Non-refundable contributions (grants)
3. Coaching
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Our Products and Services (continued)
Term Loan
Maximum loan capacity of $400 000
• The loan amount is determined on the basis of the borrower’s ability
to repay
• Moreover, the value of collateral security must be sufficient to
reasonably cover the amount borrowed
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Our Products and Services (continued)
Term loan (continued)
Collateral security used to guarantee a loan generally consists of
various business assets.
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Land and Building
Max. 70%
Equipment
Max. 70%
Inventory
Max. 50%
Working capital
0%
Our Products and Services (continued)
Term loan (continued)
Capital outlay
• Minimum 10% of the total cost of the project
• A transfer of assets may be considered as capital outlay
Interest rates
• Competitive and comparable to traditional financial institutions
• Varies depending on the risk associated with the project
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Our Products and Services (continued)
Term loan (continued)
Processing delay
• Average amount of time required per file
• Important items to consider to ensure that files are processed
rapidly
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Lenders’ Decision Making Criteria
Term loan (continued)
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Analysis of the internal and external environment of the
business
Analysis of the project
Financial analysis
Conclusion and recommendations
Our Products and Services (continued)
Non-refundable contribution (grant)
• Since 2001, in addition to offering term loans, SOCCA has
acted in the capacity of external services agency in
partnership with the Aboriginal Business Development
Program (ABDP) of Indian and Northern Affairs Canada
(INAC)
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Our Products and Services (continued)
Non-refundable contribution (grant)
Depending on the type of project, ABDP can provide financial
assistance for the achievement of the following activities
• Acquisition and start-up of a business
• Development/growth (expansion) of a business
• Operating costs
• Marketing
• Business plan and preliminary studies (equipment evaluation)
• Support to the entrepreneur (coaching, accounting)
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Our Products and Services (continued)
Non-refundable contribution (grant)
What is the maximum amount to which you are entitled?
• Entrepreneurs may individually receive up to $99 999 in financial
assistance
• In the case of community businesses (band councils), this assistance
can reach up to $1 000 000
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Our Products and Services (continued)
Non-refundable contribution (grant)
• The level of financial assistance depends on several factors
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Nature of the project
Scope of the project
Availability of other sources of financing
Repercussions and economic advantages of the project
Financing needs (see next page)
Our Products and Services (continued)
Non-refundable contribution (grant)
How do we evaluate the need for a non-refundable contribution?
• Capacity of the individual and/or business to obtain the maximum possible loan
(analysis of the possibility of refinancing of the applicant’s assets)
• A verification is made with the financial institution to ensure that the authorized
loan amount is indeed the maximum amount
• The aim of the program is to meet financing needs (last resort)
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Our Products and Services (continued)
Non-refundable contribution (grant)
Minimum capital outlay required
• Minimum 10% for young entrepreneurs (aged 35 or under)
• Minimum 15% for individuals aged 36 or older
• The amount required depends on each individual’s equity
(see example that follows)
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Our Products and Services (continued)
Policy regarding requisite capital outlay
Equity
(individual, partnership,
Percentage of capital outlay required
company)
Under $25 000
Young entrepreneur: 10%
Entrepreneur (over age 35): 15%
$25 001 to $100 000
Young entrepreneur: 11% to 15%
Entrepreneur (over age 35): 16% to 20%
$100 001 to $250 000
Young entrepreneur: 16% to 20%
Entrepreneur (over age 35): 21% to 25%
$250 001 to $500 000
Young entrepreneur: 21% to 25%
Entrepreneur (over age 35): 26% to 30%
$500 001 to $1 000 000
Young entrepreneur: 26% to 30%
Entrepreneur (over age 35): 30% to 35%
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Our Products and Services (continued)
Non-refundable contribution (grant)
Project Costs
Development of a business plan,
marketing plan or feasibility study
Potential Contribution
Up to 75%
Start-up, expansion or acquisition of a
business
Between 30% and 50%
Implementation of marketing activities
Up to 60%
Project management
Up to 75%
Advice from accountants and other
professionals after the business is
launched
Up to 75%
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Our Products and Services (continued)
Non-refundable contribution (grant)
When the project is approved
• The non-refundable contribution must be claimed as the project
advances
Example
The cost of the project is $10 000 and the authorized ABDP
contribution rate is 30% of admissible costs. You will receive a refund
of $3 000 when all expenses have been incurred
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Our Products and Services (continued)
Non-refundable contribution (grant)
Eligibility criteria
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Be an Aboriginal
Have experience and training in the domain
Requisite financial resources available (capital outlay)
Prepared for full-time involvement in the business
Impeccable credit history
Present a complete business plan in compliance with ABDP
guidelines
• Business not involved in the following sectors of activity (games of
chance, sex, alcohol, tobacco)
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Presenting an Application for Financing
To apply, you must send us
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Duly completed “Statement of Intent” form (ABDP)
Duly completed “Declaration of Applicant” form (SOCCA)
Duly completed “Personal Balance Sheet”
Copy of your Indian Status Card
Copy of your résumé
Bank statement indicating your capital outlay
Business plan (if already prepared)
Copy of loan approvals or other contributions (if already on hand)
If the business is in operation, financial statements for the past three
years along with the most recent interim financial statements
Our Team
Why apply to SOCCA?
• Unique expertise adapted to the particular needs of First Nations
• SOCCA has a multidisciplinary team of nine employees and works
with financial partners to meet the particular needs of the Aboriginal
market
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Our team
Photo not available
Jean Vincent,
CA, CGA, GFAC
President and General
Manager
[email protected]
Mario Bédard
Loan Administration
Officer
[email protected]
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Martin Légaré, B.A.A.
Director of Administration
and Operations
[email protected]
Laurent Odjick, B.A.A.
External Development
Officer
Gaspésie Peninsula –
Lower St. Lawrence
[email protected]
Elyse Boisvert
Administrative Assistant
[email protected]
Annie Gareau
External Development
Officer
(on maternity leave,
replaced by
Nathalie Noël)
Outaouais - AbitibiTémiscamingue and Great
North
[email protected]
Denise Jean,
Jean-Conrad Dussault Administrative Assistant
[email protected]
Accountant
[email protected]
Michelle Picard, B.A.A.
Financial Analyst
[email protected]
Tell Us about Your Needs
Our specialized staff can help you! Do you have
specific needs? Tell us about them! We can even
meet with you to discuss your needs.
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Contact Us
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Head Office
2936, rue de la Faune, Suite 200
Wendake (Québec) G0A 4V0
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Branch
1130, 8e Rue, bureau 202
Val-d’Or (Québec) J9P 3N6
Telephone: 418 842-0972
Toll free: 1 800 241-0972
Fax: 418 842-8925
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