An Introduction to
Tale’awtxw Aboriginal
Capital Corporation
www.tacc.ca

Who We Are
Established in 1992
Owned by 54 Coast Salish First
Nations
Provide services to all Aboriginal
peoples in the traditional Coast
Salish territory
www.tacc.ca

Services Provided
• Commercial Loans
• First Citizens Fund Loans
• Business Equity Program Contributions
• New Relationship Trust Equity Match
• First Nation Regeneration Fund Loans
www.tacc.ca

First Nation Regeneration Fund
• Launched in 2009
• A partnership between Tale’awtxw Aboriginal Capital Corporation
(TACC) and Tribal Resources Investment Corporation (TRICORP)
• Provides financing for First Nations in BC to purchase equity
positions in micro-hydro projects
firstnationregenerationfund.wordpress.com/

FNRF Projects
• Atlin Xeitl Hydro – 2 MW Project
• Kwoiek Creek Resources – 50 MW Project
• Sakwi Creek Power – 5.5 MW Project
firstnationregenerationfund.wordpress.com/

Overview – Part 1
• Summary of BEP Program: What is it?
• Program Goals
• Planned Results
• Eligible Clients
• Eligible Projects
• Ineligible Projects
• The Basics
• The Limits
• The Process
• Client Obligations

Summary
An Aboriginal Affairs and Northern Development Canada (AANDC)
program that is delivered in partnership with TACC.
Non-repayable contributions issued on a project-by-project basis.
Intended to improve ability of clients to obtain commercial financing
at reasonable terms.
From a lender’s point of view, makes a good loan better, as more
security available to support loan.

Program Goals
To increase the number of viable businesses owned and controlled
by Aboriginal Canadians, and to provide a supportive business
environment.
To cultivate a culture of entrepreneurship in the Aboriginal
community and to improve access to business opportunities.
To enhance access to capital for Aboriginal businesses that have
difficulty accessing conventional commercial financing.

Planned Results
More Aboriginal owned and operated businesses.
Support a culture of entrepreneurship in the Aboriginal community.
More jobs for Aboriginal people.
More loan capital available for Aboriginal businesses.

Eligible Clients
Individuals of Canadian Aboriginal ancestry, partnerships,
corporations owned by individuals or communities of Canadian
Aboriginal ancestry.
On-reserve or off reserve projects within the traditional Coast Salish
Territory. Includes Greater Vancouver, Fraser Valley, Sunshine
Coast and Southern portion of Vancouver Island.

Eligible Projects
• New business starts, including capital costs, limited start up
costs including inventory, marketing and operating.
• Acquisitions of existing businesses.
• Expansions of existing businesses:
- New capital / equipment
- New processes
- Modernization of technology
- Marketing
Business planning/support is available for all eligible projects

Ineligible Projects
• Community infrastructure unrelated to business development
• Public office buildings & public halls
• Recreation and friendship centres
• Gaming houses
• Alcohol or tobacco production, marketing, distribution, sales
• Sexually exploitive materials, services, products, marketing, distribution,
• Pawn shops, pay-day loan operations
• Passive investments (real estate) where applicant not actively involved.
• Businesses with more than 51% of revenue from alcohol or tobacco.

The Basics
Elements of a successful BEP deal:
• Financially mature client with 15% cash equity.
• Qualifications & experience related to the proposed business project.
• Good credit rating enabling commercial financing.
• Strong likelihood of business profitability.
• Creation of employment and business income for owner.
Above all else, incrementality: new jobs, new revenues, new markets,
new social benefits.

The Limits
• For individual owned businesses, $99,999.
• For community owned businesses, $250,000.
Subject to:
• Reasonable equity investment based on net worth.
• Demonstrated need for BEP investment.
• Generally, commercial financing for about 50% of securable assets
should be available.
• BEP funding should not exceed 35% of eligible costs
• Program funding availability.

The Process
1) Filing of application
•
Confirmation of client eligibility
•
Confirmation of client equity & credit maturity
•
Confirmation of project eligibility
•
Evaluation of project potential
•
Evaluation of link between client and project
2) If evaluation positive
•
Offer business planning assistance (75%)

The Process
Following receipt of business plan:
•
Re-confirmation of screening decision
•
Confirmation of financing arrangements
•
Alternative financing – vendor, leases, etc not considered
“arms length” – generally not eligible.
•
Evaluation and write up – includes consideration of jobs
created, other social benefits, business profit/management
fee for owner of greater than $15k

The Agreement
Details the following:
•
Cash equity required
•
Commercial financing required
•
BEP Contribution amount based on lesser of $ amount
approved and % of eligible costs (If costs are less than
planned, BEP contribution reduced proportionately)
•
Period of eligibility from “Effective Date” (date of project
approval) to “Completion Date”.
•
Monitoring period – at least two years following completion
date.

Client Obligations
Business must:
•
Be properly registered (name protected with BC Corporate registry,
GST, Worksafe BC, municipal licensing if required, etc).
•
Maintain proper records and submit year end financial statements.
•
Obey whatever laws and regulations apply – federal, provincial,
municipal, First Nations.
BEP Support:
•
Professional fees (75%) for accounting, legal, internal systems,
project management, etc.

Overview – Part 2
• Typical BEP Business Planning Project
• Typical Commercial Project
• TACC Interpretations in Program Delivery
• Particular Issues - Partnerships

Typical BEP Business Plan
Costs
Total Costs
$
%
10,000 Cash Equity
2.500
25
BEP
Professional Fees
$
Financing
7,500
75
10,000
100
10,000 Total Financing

Typical Commercial Project
Costs
$
Financing
$
%
Capital Costs
75,000 Cash Equity
15,000
15
Operating Costs
15,000 BEP
35,000
35
Marketing Costs
10,000 Loan
50,000
50
100,000
100
Total Costs
100,000 Total Financing

TACC Interpretations
• 15% cash equity, can be supplemented with other equity matching.
• Cash equity is necessary to demonstrate financial maturity and
cannot be replaced with gifted equity.
• Minimum capital project size $25,000.
• Minimum marketing project size $10,000.
• Business support will be considered on a case-by-case basis for
non-clients.
• Business planning only considered for potential BEP clients.

Particular Issues Partnerships
Partnerships (Aboriginal / Non-Aboriginal)
• Where spousal partnerships and both partners critical, treated as
50% eligible.
• Where Aboriginal partner not substantively involved, generally not
eligible.
• Where non-Aboriginal spouse not substantively involved, 100%
eligible.
• For other partnerships, BEP funding generally prorated based on
Aboriginal ownership and control.