New Brunswick Aboriginal Peoples Council

Equity Fund Inc.

The program will offer financing to enhance the viability of new and existing businesses operated by qualified clients or to improve their access to other funding sources.

NBAPCEF will make investments in Aboriginal businesses, using a variety of possible instruments including common and preferred shares and debentures or subordinated loans, but always on such terms that the capital invested will be regarded, in general practice and in particular by others who finance in the same business, as having the quality of risk capital.No investment should be seen as getting into a joint venture with the applicant.

The NBAPCEF will adopt innovative and flexible approaches to financing in order to accommodate the applicant’s business circumstances and maximize the likelihood of return on investment.

Eligibility:

Native Businesses:

·Owned and operated by an individual who has reached the age of majority, is of aboriginal descent, and living off reserve.

·A partnership, joint venture, or corporation in which majority (at least 51%) ownership and control lies with the same as above.

·The applicant must have been a resident of NB or PEI for at least a year before applying.

·The business must be located off reserve with a Head Office in NB or PEI and the majority of employees must be located in NB or PEI.

·The primary purpose of the business must be to establish and maintain commercial viability. Projects which have employment generation as their primary purpose are eligible to be considered if they can prove maintenance of commercial viability.

Non-Eligible:

·Native financial or lending institutions.

·Applicants seeking consumer of personal housing loans.

·Officers and Directors of the Equity Fund.

Requirements:

·The client must be involved in day to day operation.

·All ventures equity must be sufficient to demonstrate/have demonstrated commitment, representing as a minimum 10% of capital and or directly related project costs.The exception is an ongoing business which has previously demonstrated commitment or where the Board is convinced that consideration of a lower proportion can be made based upon other sound business factors.

·An in depth business plan is required.

Investment Limits:

·$ 40,000.00 to an individual business

·$ 100,000.00 for a joint venture or corporation.

·An investment in an approved project shall not be increased during the term of the agreement.

·Aboriginal owned economic development corporations are eligible to apply for 60% of the equity funds total capital amount.

Pricing/Fees:

·The portfolio should provide a rate of return averaging 9% per annum.

·A repayment schedule will be clearly outlined in a loan or contribution agreement, to be signed before the investment is advanced.

·Flexible repayment schedules will be tailored to the needs of the applicant.

Definitions:

Viability – being financially stable

Capital – funds

Equity – the money value of a property or of an interest in a property in excess of claims or liens against it.

Joint Venture - w hen two or more persons or organizations gather capital to provide a product or service.

Per annum – per year.

Corporation – a body formed and authorized by law to act as a single person although constituted by one or more persons and legally endowed with various rights and duties including the capacity of succession.

For more information contact;

NBAPC – Equity Fund

320 St. Marys Street

Fredericton, NB

E3A 2S4