Contact you local AFI to be considered for an ABFP contribution to supplement other f
Permanent, for-profit business entities operating in southern Ontario, owned and controlled by eligible applicants (at least 50% or higher if AFI requires) and generating active business income may be considered. Documentation regarding the legal business entity and business registrations are required. Viability of the business must also be clearly demonstrated. Applicant businesses must clearly meet all six (6) business eligibility requirements.
Only for-profit enterprises, generating active business income (not income from passive investments) may be considered.
The business must be at least 50.1% owned by eligible Indigenous applicants who are actively involved in the daily operations & management of the business and essential to its success.
The business must be physically located and operating in southern Ontario as serviced by our participating southern Ontario Aboriginal Financial Institution partners (* Note: IAPO Agriculture and MVDF projects have expanded service-delivery areas).
The business must be intended to be the the full-time activity and primary source of income of eligible applicant(s).
The business must be registered, licensed and certified as required in the industry and/or jurisdiction(s) in which the business will operate.
Ultimately, only businesses with a clearly viable business model can be supported. This includes a sufficient market and a viable (profitable and sustainable business model).
Those having secured commercial financing from their local southern Ontario Aboriginal Financial Institution (AFI) for their project will be considered by AIC to demonstrate financially viability.
Businesses with a track-record of profitability, as demonstrated by their financial statements, are more likely to be considered viable than new businesses without a track-record.
New business that demonstrate how they will replicate and maintain successful business models to similar types of businesses could be considered viable.
The most difficult businesses to demonstrate viability are those built around new and unproven products and services and/or those being established by inexperience owners.
Some highly regulated industries may not be considered for support as their risk may be above the risk-tolerance level of lenders and funders. Check with your local AFI.
** Where eligible applicants have secured financing from a participating local AFI, AIC may, at its full discretion, defer to the AFI's policies regarding full-time businesses, types of business registrations and business viability subject to ABFP constraints.
Businesses that are otherwise eligible (meet all the above criteria) but are not owned 100% by eligible Indigenous applicants may still be considered for support but pro-rated based on eligible ownership.
For example, if eligible applicants own 60% of the business, then the maximum support considered for capital costs would be 24% (60% * 40%) the maximum for planning and non-capital costs would be 45% (60% * 75%).
Eligible businesses co-owned with spouses where only one spouse is an eligible applicant will see support pro-rated at one-half (50%) regardless if the eligible applicant legally owns a percentage higher than 50%.
Eligible businesses that are co-owned with non-Indigenous partners will see rates of support pro-rated by the percentage ownership of eligible applicant(s) as shown in the partnership or incorporation documents. If the ownership of eligible applicant(s) is less than 50.1%, the business will not be considered for support.
Businesses that are structured primarily for the benefit of ineligible persons will not be considered.
Businesses that generate income primarily from passive investments (financial investment and rental income), home-based tiered-marketing, not-for-profit activities and social-enterprises are not supported.
Also, activities that are highly regulated (for example, tobacco, gambling, production of alcohol, etc.) or whose appropriateness or legality is complex and/or not clear will not be considered for support.
Individual artistic endeavors (for example, writing a book, making a movie, recording a CD) or an single product are not considered permanent businesses and are not eligible and are not considered for support.
Business built around new and unproven products and services and/or those being established by inexperience owners are unlikely to be supported until they can demonstrate viability.
The program is also not intended to fund part-time or sideline businesses. Full-time seasonal business may be considered.
Copyright © 2019-2022 Aboriginal Impact Capital