Communities and collectives of First Nations, Inuit, and Métis can apply for financing to support their community-owned companies whose earnings have been impacted by COVID-19.
The Indigenous Community Business Fund contributes $117 million in non-repayable financial contributions to support community– or collectively-owned companies and microbusinesses whose revenues have been impacted by the COVID-19 pandemic. This funding was renewed in Budget 2021 with an additional $117 million.
The fund assists with business operations and costs associated with business adaption, planning, and reopening. The fund aims to assist enterprises that do not qualify for other COVID-19 relief measures the Canadian government offers.
Its purpose is to reduce the financial strain on small firms and microbusinesses, allowing them to strengthen operations and maintain viability during the epidemic to place them for recovery.
There are two streams in the fund:
- Stream 1 funds will be distributed directly to communities and collectives to support their COVID-19 economic priorities. For stream one financing, no applications are necessary.
- Stream 2 funding will be awarded based on proposals. The community or collectives must submit applications on behalf of the business. The money will go straight to the communities and collectives. Indigenous Services Canada (ISC) regional offices will handle the funds for First Nations and Inuit community-owned companies. Métis organizations included in the “Métis businesses” section will handle financing for Métis collectively-owned firms.
Who Is Eligible to Apply?
Your community or collective is eligible for Stream two funding and can apply if the business:
- is its community- or collectively owned by First Nations, Inuit, or Métis?
- resides in the provinces
- Since October 1, 2019, it has been in operation.
- has suffered a financial setback as a result of COVID-19, or that financial assistance would prevent layoffs, bankruptcy, or permanent closure
- Before the economic disturbances caused by COVID-19, the company was solvent, financially viable, and had not filed for bankruptcy.
- Currently operates as a for-profit corporation and plans to continue operating with lower revenues in the following months due to COVID-19, following the Canada Emergency Wage Subsidy provisions.
- has previously applied for federal business support and been denied, in whole or in part, or does not meet the qualifying criteria for business support:
- Depending on the sought assistance, this may entail applications to more than one federal program.
A community or collective of First Nations, Inuit, or Métis people can apply for assistance from one or more community-owned companies.
The Northern Business Relief Fund accepts applications from businesses in the territories.
How to Apply?
First Nations and Inuit Businesses
To apply for funding from Stream 2:
- apply for financial assistance from the Indigenous Community Business Fund
- provide:
- financial accounts to show a drop in income over the period covered by the application request
- a copy of your disaster recovery or business continuity strategy
- If incorporated, letters of patent or incorporation paperwork
- Send your application packet to your ISC regional office representative through email using the form below.
After submitting your application to the ISC regional office, you will receive an acknowledgment notification within two business days.
If necessary, more documentation from the applicant may be requested.
Métis Businesses
Métis enterprises must apply to the Métis organizations listed below located in the same province as their Métis business. Each organization will evaluate the applications following the ICBF standards.
Costs and Activities that are Eligible
1st Stream
Non-repayable contributions will be made to support communities affected by the COVID-19 epidemic in the following ways:
- addressing the pandemic’s broader economic needs:
- Strategies for collaborative or community economic recovery
- skilled guidance
- services for small businesses in general
- assisting small enterprises with few employees:
- a home-based sole proprietorship or a family-run business that was unable to participate in other federal initiatives
2nd Stream
Non-repayable contributions will be considered for these reasonable operating expenditures if the COVID-19 pandemic has impacted business revenues:
- Payments on existing equipment and machinery under a capital lease
- Salaries and benefits are paid at the same rate as the Canada Emergency Wage Subsidy, but only if you are not qualified.
- utilities
- Interest payments and bank fees
- fees for professionals
- insurance payments every month
- Only if you are not eligible for Canada Emergency Commercial Rent Assistance will you be able to pay your rent or mortgage.
- Costs of supply and delivery
- operating charges or capital expenditures incurred in the course of adapting the company’s operations and services
- payments for ongoing debt service on an existing obligation that is unrelated to other government COVID-19 financial assistance
- other operational costs that are reasonable
COVID-19-related costs associated with the adaptation, planning, and reopening of a business will also be evaluated for non-repayable contributions, such as:
- retraining costs required to comply with provincial health regulations
- marketing
- technology
- services provided by professionals
- maintenance and repairs that are planned. Due to a lack of cash flow, the company cannot finish.
- other operating costs that are reasonable
The following expenses are not eligible for non-repayable contributions:
- any expenses not related to the operation, adaption, development, or reopening of a business that is regarded as unreasonable
- other federal COVID-19 financial help refinancing or repayment of an existing loan or debt
- Amortization and goodwill charges
- building acquisitions
- the price of a federal or provincial government’s service
- monetary loss
Assessment Process
First Nations and Inuit Businesses
In the order in which they are received, applications will be considered. They will be checked for eligibility using the criteria listed above before moving to an assessment to establish the number of eligible funds.
As decisions become available, they will be communicated to applicants. Applicants that fail to demonstrate that they meet all recipient and cost eligibility standards will be turned down.
An ISC representative may contact the applicant for additional information during the intake and evaluation process, including missing or incomplete documentation. If you don’t answer requests for additional information within five business days, your application may be delayed or denied.
Métis Businesses
The Métis organizations will evaluate the applications indicated above. Please get in touch with the Métis organization in your province for further information on how they will evaluate applications.
Reporting Obligations
Recipients will be expected to submit project reports regularly and annual financial accounts. The results and fulfillment of deliverables will be detailed in project reports.
Deadline
There are no deadlines for submissions. Funding applications are accepted on a rolling basis until all funds have been allocated.
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