Why become a part of NACCA?
We provide Aboriginal Financial Institutions with:
- a variety of financing and lending assistance programs;
- capacity development for AFI staff and board members;
- help to implement critical lending standards; and
- ensure quality assurance practices to make your AFI successful.
The most significant benefits associated with being a part of NACCA include the achievement of self-reliance, better operations, and improved standards for AFIs. Plus our annual conferences mean that you are part of a sharing community of like-minded people.
NACCA’s Aboriginal Entrepreneurship Program (AEP)
NACCA administers funds for the AEP through five programs to help Aboriginal entrepreneurs and communities and stimulate economic growth.
Aboriginal Business Financing Program (ABFP)
The ABFP is designed to increase the number of Aboriginal businesses in Canada. AFIs offer non-repayable contributions to eligible Aboriginal entrepreneurs up to a maximum of $99,000 and to community-owned Aboriginal businesses up to $250,000. The ABFP enables AFIs to assist business clients on the basis of proven need by providing equity, quasi-equity, and business support services which will enable those clients to develop their businesses and secure additional third-party debt financing as required.
The ABFP was established in the 1990s as Aboriginal Business Canada (ABC). It has operated under various administrations and, until recently, was being delivered via an agreement between INAC and 11 AFIs. The administration of the ABFP has been transferred to NACCA under a two-year agreement with Indigenous and Northern Affairs Canada (INAC) and the 11 AFIs. Having NACCA as the unique funding recipient to manage the allocation of contributions to AFIs is a more efficient way of managing and provides increased flexibility to respond to the needs of more AFIs.
Aboriginal Capacity Development Program (ACDP)
The ACDP builds the capacity of AFI employees and board members to deliver effective and consistent developmental lending services, product support training, professional development, and business support activities. The ACDP aims to support AFIs to stay abreast of leading practices in risk-managed developmental lending.
Interest Rate Buy-Down (IRB) Program
The IRB program is designed to encourage additional developmental lending. The IRB program provides an interest rate subsidy to qualified AFIs with a low liquidity ratio that wish to access additional lending capital from more traditional sources such as banks, trust companies, and private lenders. In 2015-2016, NACCA established that the annual fees associated with IRB lines of credit would be eligible for reimbursement, up to a maximum of $10,000 per AFI.
Aboriginal Developmental Lending Assistance (ADLA)
ADLA is a relatively new program that supports AFIs in recovering some of the delivery, administration, and repayment costs associated with eligible developmental lending. This program requires AFIs to use dynamic risk measurement and management instruments to qualify loans and optimize distribution of AFI loan capital.
Enhanced Access (EA) Program
The EA loan fund helps AFIs access additional loan capital for viable, qualified, Aboriginal businesses. AFIs serve defined territories and/or First Nation, Inuit, and Métis groups across Canada. The EA program serves Aboriginal entrepreneurs and businesses operating in regions not serviced by an AFI.
To alleviate the costs incurred when servicing remote clients, the program provides repayable, interest-free loans as well as non-repayable, operational support, allowing AFIs to expand outside their normal geographical area at little to no additional cost to them. Most of the loans are to start-up or expand a business or to modernize equipment.