Aboriginal Business Startup and Expansion Program 2018-11-08T22:02:47+00:00

Aboriginal Business Start-Up and Expansion Program (ABSEP)

IAPO is pleased to offer the Aboriginal Business Start-Up and Expansion Program (ABSEP) which provides business financing and grants for qualified First Nation individuals, entrepreneurs and businesses. Qualified applicants are eligible for up to $200,000 in financing and $20,000 in grants. Funding, which extends until March 31, 2017, is provided through the Aboriginal Economic Development Fund by the Ministry of Aboriginal Affairs. The goal of ABSEP is to enhance community-level economic development by supporting the success of high potential business start-ups and expansions. Aiming to address barriers to financing, ABSEP provides business financing and grants to qualified aboriginal individuals and businesses. Financing, including term loans and working capital, is tailored to meet business needs and applications will be considered for full project financing, partial financing or leveraging to complement other financing or funding.

Areas of financing include:

Seed Capital

Financing provided to study, assess and develop an initial concept for a new product, service or process with high market potential preceding the start-up phase.*

Start-up and Early Stage Loans

Financing provided to support high-potential start-up businesses (i.e., businesses with potential to contribute to tangible benefits for Aboriginal people, including employment and/or training opportunities) and the development of a new product, service or process with high market potential for businesses considered to be ‘startup’ or ‘early stage’ enterprises.*

Expansion Capital

Financing provided for the growth and expansion of a promising project or enterprise with a high potential for benefits to Aboriginal people, specifically employment, training and/or business opportunities. Capital may be used for increasing production capacity, market or product development, or for additional working capital.*

Business Acquisition

Financing provided for the acquisition of a promising business.

*source-AEDF Business and Community Fund Application Guide

Who is ABSEP for?

ABSEP is available to support qualified First Nations farm and agribusinesses across Ontario. As well, ABSEP is available to support qualified First Nations businesses in all sectors in Central Ontario including the eastern GTA, South Central, Eastern and Southeastern Ontario. Qualified businesses are eligible for funding of up to $200,000 and grants of up to $20,000. To qualify, applicants must demonstrate economic viability, as well as, the need for ABSEP funding.

FAQs

Aiming to address barriers to financing The Aboriginal Business Start-up & Expansion Program (ABSEP), provides business financing and grants to qualified aboriginal individuals and businesses. Financing, including term loans and working capital, is tailored to meet business needs and applications will be considered for full project financing, partial financing or leveraging to complement other financing or funding. Funding for ABSEP is provided through the Aboriginal Economic Development Fund by the Ministry of Indigenous Relations and Reconciliation.

Status Indians, living on or off reserve; Aboriginal businesses (51%) majority-owned; and economic development corporations owned by a First Nation which are engaged in a for-profit business activity in Ontario are eligible. Applications relating to farm and agribusiness are welcomed from applicants across Ontario. As well, applications relating to all business sectors are welcomed from applicants in Central Ontario including the GTA, South Central, Eastern and Southeastern Ontario. Non-Status Indians, Inuit and Metis are eligible, however, they are being serviced by Two Rivers CDC http://www.tworivers.ca/ and the Metis Voyageur Development Fund http://www.mvdf.ca/
To be eligible, applicants must demonstrate that ABSEP financing is required and that other sources of financing have been exhausted.

$200,000 in financing and $20,000 grant

Business start-up, business expansion and business acquisition costs. Projects must demonstrate viability, the ability of the business to pay all of its expenses including loan payments and generate a profit for the owner. Applicants must demonstrate the project benefits, their need for financing, financial and managerial capability, and a sound financial plan.

Eligible costs may include, but are not limited to; professional fees, research and development, new product development, and market expansion. Capital to support the growth of the business is eligible if it is to be used to increase production capacity, productivity, profitability, market reach, product development, or for working capital. Acquisition of an existing business with the potential to benefit Aboriginal people is eligible. All eligible expenses must be incurred between the project start and end dates.

Generally, a minimum of 10% cash equity is required.

For an application call 1-800-363-0329 or email: info@indianag.on.ca

Once your application is received you will be contacted and additional information about your project may be sought. When all information is obtained, your application will be screened for eligibility and then presented for evaluation and assessment.

At the application stage, evidence of Aboriginal ancestry and other personal and project data is required. At the evaluation stage, evidence of equity and a business plan is needed which should include a resume, demonstrated market potential and business viability.

It is applied directly to the loan to either reduce the term and/or interest paid on the loan.
This will be confirmed at the time of approval on a case by case basis.
No. Projects must demonstrate the assets to be purchased will expand or enhance operations.
IAPO staff can assist and /or check with your local EDO office.
This will depend on the loan terms and amortization schedule set up when your loan is approved. Typically loan payments commence one month after you receive your loan.

In addition to making regular loan payments, you will be required to submit annual status reports and annual financial statements. Any publicity about the project must include recognition of the AEDF program. All records of project expenditures must be retained.

Ready to Apply?

For more information including complete eligibility requirements or an application, contact 1-800-363-0329 or info@indianag.on.ca.
For Metis, Inuit and Non-Status inquiries, information is available at www.aboriginalbusinessfinancing.ca.