A new era began for Aboriginal businesses in the Fort Frances area when Kenora-Rainy River MP and Minister of Indian Affairs and Northern Development Robert Nault announced the formation of a new joint project last week.
Speaking to a group of Aboriginal, business and government partners at the Couchiching Bingo Palace on Oct. 15, the minister announced the formation of the Fort Frances Business and Service Corporation (FFBSC)—an Aboriginal corporation designed to provide enhanced business and financial support to Aboriginal enterprises.
“With these increased services, Aboriginal organizations will receive more support to better contribute to the economic development within their communities,” said Nault.
“We believe this collaboration will allow First Nation businesses to grow within their respective communities and further establish themselves in the business world in general,” he added.
FFBSC’s financial services will include various loans, including micro loans to a maximum of $20,000 as well as some larger loans. Micro loans will provide start-up capital for new entrepreneurs, while medium and large loans will be used to expand the bases of established businesses.
The business services provided include opportunity identification, business planning, human resources planning, marketing, mentoring and aftercare.
FFBSC will be entirely owned and operated by Aboriginal people. The sole shareholder in the corporation will be Pwi-Di-Goo-Zing Ne-Yaa-Zhing (PWI) Advisory Services—the administrative and economic services delivery arm of the Fort Frances Chiefs’ Secretariat.
Five stakeholders will contribute services and funding to FFBSC. These include PWI, the National Aboriginal Capital Corporation Association (NACCA), the Business Development Bank of Canada (BDC), the Federal Economic Development Initiative for Northern Ontario FedNor , and Indian and Northern Affairs Canada (INAC).
PWI will provide $100,000 annually for five years and additional loan capital may be made available through NACCA through the Access to Capital Program. BDC will provide $250,000 in capital for a micro-credit loan fund while FedNor and INAC funding will be used to support management and lending operations.
In addition, FedNor will provide $120,000 over two years, while INAC has pledged $320,000 to assist with start-up and operating costs over the initial 18-month period. Future INAC funding will be determined based on needs and demonstrated results.
Nault pointed out the funding will be entirely controlled by FFBSC without interference from the government.
“It (funding) will be distributed on an equity basis by the First Nations themselves,” Nault stressed.
“The Aboriginal Capital Corporation will allow First Nations to develop their own economies,” he added. “It is fully Aboriginal-owned through tribal council initiatives.”
Nault said he has personally been involved in this project since its inception two years ago and is convinced it is a viable and sensible program.
“This is the approach my government sees as the most beneficial for Aboriginal peoples,” he said.
Fort Frances Times
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