Announcement from All Nations Trust Company on the Indigenous Economic Stimulus Package for the Indigenous Entrepreneur. Untitled post
The National Aboriginal Capital Corporations Association (NACCA), which represents 59 Aboriginal Financial Institutions (AFIs) in Canada, is responsible for the overall administration of the funding and will be flowing funds to the various AFI’s across Canada, including ANTCO. The NACCA website has an informative COVID-19 resource page that can be found on the main page. I recommend reviewing this resource page and signing up for NACCA’s “Breaking news and updates”.
At that time, we did not have many details and were waiting for further direction from the National Aboriginal Capital Corporations Association (NACCA). While they are still working with the Federal Government to finalize the program, we are happy to provide some additional information and some suggestions for how you can prepare to participate in the program if you require assistance. Please be advised that this information could change if the Federal Government adjusts any of the details.
- Focus is on current and former Aboriginal Financial Institution (AFI) clients who would likely fail without emergency assistance.
- Maximum assistance is $40,000, comprised of a 75% loan and 25% non-repayable grant. The loan and grant are issued together.
- The assistance is for operating expenses and cannot be used for capital purchases.
- Loan details:
- Up to 48-month term
- Interest free
- No payments in the first 12 months
- Loan payments begin in the 13th month and are amortized of the remainder of the term
- Clients can repay loans early without penalty
- Businesses should first apply to the AFI that made the original loan to them
- Businesses applying for the assistance must outline why the loan is needed and how the funding will be used by submitting a basic cashflow projection for the April 1, 2020 to March 31, 2021 period.
- Application packages, including a cashflow template, will be available soon. We will provide and post to our website when ready.
- Funds should start flowing by the end of May.
What you can do?
The most important thing you can do is start the process of understanding your cash flow requirements for the next year. Of course, that is a tough task, but you will need to make a best estimate of your revenues (including other government funding) and expenses for the period. It is that understanding that will allow you to quickly fill out the application and receive the funding. We expect to have a wave of applications once the program officially opens and it is in your best interest to be fully ready to go. While the next few weeks will undoubtedly see new details, the basics of your requirements are known as of today. We decided to provide the information now rather than wait for the final program details so that you can prepare accordingly.
What are we doing at ANTCO?
Now that we have most of the details, we are preparing our response plan to ensure rapid delivery of the program. As we get closer to the opening of the application process, we will provide detailed instructions that will aim to make the process as easy as possible. For those of you that have already been in contact with us regarding your loan(s) or mortgage(s), the process will continue with your Loans Officer. We will be making additional staff available to assist with the program and will provide some contact information once the application process goes live.
As I mentioned above, we are providing this information ahead of the final details as we believe being timely beats being perfect. Please continue to check our website, Facebook and Twitter for new information.
Thanks so much for your time, stay safe and we will be speaking with you soon.
Darcy Johnson, Chief Executive Officer
All Nations Trust Company